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A bond with exactly 15 years until maturity paid its semiannual coupon yesterday. The annual coupon...

A bond with exactly 15 years until maturity paid its semiannual coupon yesterday. The annual coupon rate is 6.12% and the bond price today is $1,116 . Suppose that the yield-to-maturity remains constant. Immediately after receiving the coupon in 6 months find the capital gain or loss that the bond will generate.

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Expert Solution

Solution :-

Now Capital Loss = $1,116 - $1,112.35 = $3.65

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