How much is the capital gain or loss

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Petro Canada issued a 15-year, 6% semiannual coupon bond at par 3 years ago. Today, the market interest increases to 8%. However, it is expected that the market interest rate will decrease to 6.5% one year from now. If you purchase the Petro Canada bond today and sold it one year later, how much is the capital gain or loss?

Reference no: EM132780475

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