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On January 15, 2012, TEX Consulting, Inc. issued some $1000 parvalue bonds. These bonds have a coupon rate of 8.25% and the couponpayments are quarterly. On the original issue date, the bonds had30 years to maturity and the original YTM on these bonds was 8.75%.Exactly one year after issue, these bonds traded at a price thatresulted in a YTM of 6.25%. If you had bought one of these bonds onthe issue date and sold the bond exactly one year later, what wasyour percentage capital gain or loss?
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