What is capital gain or loss on bond-yield to maturity rises

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Reference no: EM131020239

You own a bond with the following features: 7 years to maturity, face value of $1000, coupon rate of 3% (annual coupons) and yield to maturity of 2.8%. Just after you purchase the bond, the yield to maturity rises to 5.4%. What is the capital gain or loss on your bond?

If the answer is a capital gain just enter the number.

If the answer is a capital loss enter a negative number.

Reference no: EM131020239

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