A $2,500 bond had a coupon rate of 5.20% with interest paid semi-annually. Tiffany purchased this bond when there were 7 years left to maturity and when the market interest rate was 7.50% compounded semi-annually. He held the bond for 2 years, then sold it when the market interest rate was 3.20% compounded semi-annually.

a. Calculate the purchase price of the bond.

b. Calculate Tiffany's selling price.

c. Calculate his gain or loss on this investment.