Capital gain on the bond investment

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Mr. Manhas purchased 10 bonds, each with a face value of $1000 and paying a 6% coupon rate. On the purchase date, the bonds still had 9= years remaining until maturity, and the market rate of return for bonds of this maturity was 7% compounded semiannually. Two and one-half years later. when the interest rate had declined to 5.5% compounded semiannually. he sold the bonds. What was the capital gain (or loss) on the bond investment?

Reference no: EM133189224

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