Government bond with a yield

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Reference no: EM13951701

Two years ago, Mathew purchased a 10 year government bond with a yield of 4.75%. Today, the 23) interest rate on government bonds with 8 years to maturity is 3.5%. If Mathew sells his bond today, he most likely will

A) realize a capital loss.

B) realize a capital gain.

C) sell the bond at par value.

D) sell the bond at face value.

Reference no: EM13951701

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