In: Finance
Exactly two years ago an investor purchased a Portuguese government bond with a face value of EUR 10,000, an annually paid coupon of 5%, a remaining maturity of 10 years, and a YTM of 12%. Today, i.e., two years later, the bond has a YTM of 4%. What is the capital gain in EUR for this investor who bought the bond two years ago and sold it today (rounded to the nearest EUR)?