Two years ago, David purchased a $1,000, 5 year, 5% bond with 6% interest rate. He wants to sell the bond this month. Given that the current market…

Two years ago, David purchased a $1,000, 5 year, 5% bond with 6% interest rate. He wants to sell the bond this month. Given that the current market rate is 4%.

What is the taxable capital gain when David sells the bond.

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