What is your potential gain or loss if your expectation

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Reference no: EM131081606

Tinker Spy Corp. has a high-yield junk bond with the following features: Principal $1,500 Coupon 0% for years 1 through 5 and 9% for years 6 through 10 Maturity 10 years The current interest rate on comparable debt is 9 percent. If you expect that the interest rate will be 8 percent five years from now, what is your potential gain or loss if your expectation is correct and interest rates are 8 percent after five years? Round your answer to the nearest dollar. $______

Reference no: EM131081606

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