A $1,000, 6% bond redeemable at par with semi-annual coupons was purchased 10 years before maturity to yield 5% compounded semi-annually. The bond was sold three years later at 102. Calculate the gain or loss on the sale of the bond.

Select one:

a. $43.35

b. $39.45

c. $34.45

d. $38.45

e. $44.35