On January 15, 2012, TEX Consulting, Inc. issued some $1000 par value bonds. These bonds have...

On January 15, 2012, TEX Consulting, Inc. issued some $1000 par value bonds. These bonds have a coupon rate of 8.25% and the coupon payments are quarterly. On the original issue date, the bonds had 30 years to maturity and the original YTM on these bonds was 8.75%. Exactly one year after issue, these bonds traded at a price that resulted in a YTM of 6.25%. If you had bought one of these bonds on the issue date and sold the bond exactly one year later, what was your percentage capital gain or loss?

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jeff jeffy answered 2 months ago

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