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Exactly two years ago an investor purchased a Portuguese government bond with a face value of...

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Finance

Exactly two years ago an investor purchased a Portuguesegovernment bond with a face value of EUR 10,000, an annually paidcoupon 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 thecapital gain in EUR for this investor who bought the bond two yearsago and sold it today (rounded to the nearest EUR)?

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