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Question 141

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Use the following information to answer the question below.
Five years ago Unicorp issued 8% semiannual coupon bonds. The bonds had a par value of $1000 and had an original maturity of 20 years when issued.
-Assume the bond was issued at par with an 8% coupon payable semi annually. If you bought it two years after issue with a yield to maturity of 7% and sold it three years later at a yield to maturity of 9%, what would be your capital gain or loss on the transaction?

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Purchase price: $1,1...

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