In: Finance
Bond A has the following features:
Face value = $1,000,
Coupon Rate = 9%,
Maturity = 6 years, Yearly coupons
The market interest rate is 4.47%
If interest rates remain at 4.47%, what is the percentage capital gain or loss on bond A if you sell the bond in year 1?
State your answer to 2 decimal places (e.g., 3.56, 0.29)
If there is a capital loss make sure to include a negative sign in your answer (e.g., -0.23)