Approximate capital gain on bond

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A GoodCredit company issued a bond with par value of $1,000.00, a time to maturity of 20.00 years, and a coupon rate of 7.00%. The bond pays interest annually. If the current market price is $700.00, what will be the approximate capital gain on this bond over the next year if its yield to maturity remains unchanged? NOTE: Capital gain is change in bond price. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131434540

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