Find the Gain or Loss on the Sale Without Constructing

Find the gain or loss on the sale without constructing a bond schedule for six $3500, 3.5% bonds with interest payable semi-annually redeemable at par bought twenty-one years before maturity to yield 5.5% compounded semi-annually. The bonds were sold three years later at 102.

A) $5180.68 Gain
B) $5180.68 Loss
C) $5612.65 Gain
D) $5612.65 Loss
E) $5153.98 Loss

Correct Answer:

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