Here are the numbers I have calculated. How do I detemine if there is a gain or

Question

Here are the numbers I have calculated. How do I detemine if there is a gain or a loss and what the value of that gain or loss is?

10-Year Bond Purchased for $1000 5 Years Ago <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?>

Original Value

$1000

Coupon Rate (From table you completed above at the chosen date from 5 years ago, the original 10-year Nominal T-bond Rate divided by 2 for semi-annual payments)

5.11%/2 = 2.555%

Current 5-Year Yield to Maturity (The most recent 5-year Nominal T-note Rate reported at the Fed site divided by 2 for semi-annual payments)

.73%/2 = .365%

Number of Semi-Annual Periods Remaining

10

Current Value*

$1214.66

Gain or Loss on the Bond over the 5 years

Original Value

$1000

Coupon Rate (From table you completed above at the chosen date from 5 years ago, the original 10-year Nominal T-bond Rate divided by 2 for semi-annual payments)

5.11%/2 = 2.555%

Current 5-Year Yield to Maturity (The most recent 5-year Nominal T-note Rate reported at the Fed site divided by 2 for semi-annual payments)

.73%/2 = .365%

Number of Semi-Annual Periods Remaining

10

Current Value*

$1214.66

Gain or Loss on the Bond over the 5 years

Explanation / Answer

Gain = $200.66

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