Would you realize a capital gain of capital loss from this


A 15 year coupon paying semi- annual bond with a 5.40% coupon rate and $1000 par value, has an annual yield to maturity (YTM) of 4.6%. (a) What is the price of this bond? (b) Would you realize a capital gain of capital loss from this bond? (c) Is this a premium bond or discount bond? Why?

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Finance Basics: Would you realize a capital gain of capital loss from this
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