Determine if these statements are true or false.
1. True or False: If you buy a bond at par and hold it to maturity, you will experience a capital gain.
2. True or False: If you purchase a $1,000 par value bond for $1,050 and hold it to maturity, you would experience a capital gain on the bond equal to 5-percent.
3. True or False: Capital losses always reduce the investor’s rate of return.