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A $5,000 bond had a coupon rate of 5.25% with interest paid semi-annually. Eric purchased this bond when there were 8 years left to maturity and when the market interest rate was 5.50% compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was 5.00% compounded semi-annually. a. What was the purchase price of the bond? $0.00 Round to the nearest cent b. What was the selling price of the bond? $0.00 Round to the nearest cent c. What was Eric's gain or loss on this investment? amount was $ $0.00 .

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Financial Management, Finance

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