Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 11

One year ago,you bought a two-year bond for $900. The bond has a face value of $1,000 and has one year left until maturity. It promises one additional interest payment of $50 at the maturity date. If the interest rate is 5 percent per year,what capital gain (or loss)would you get if you sell the bond today?