The investor calculates the purchase price carrying value


An investor buys a 5% coupon bond that has a twenty-year life, $100 redemption value, and 8% required rate of return. After four years, the required rate of return has decreased to 7% and the investor sells the bond. The investor calculates the purchase price, carrying value, and selling price. What was the investor’s capital gain when selling the bond? (Dollars, x.xx)

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Financial Management: The investor calculates the purchase price carrying value
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