Bonds-yield capital gain and loss

Reference no: EM13116096

Suppose you have a bond, with a par value of $1000, that pays interest twice a year at the rate of 12%. You paid $853.29 when you purchased this bond

a) Calculate the interest rate yield of your bond.

b) You are selling this bond today and will receive $ 936.33 for it. What is the capital gain/loss?

Reference no: EM13116096

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