A

$2,500

bond had a coupon rate of

6.60%

with interest paid semi-annually. Cody purchased this bond when there were 7 years left to maturity and when the market interest rate was

8.10%

compounded semi-annually. He held the bond for 3 years, then sold it when the market interest rate was

3.50%

compounded semi-annually.\ Calculate his gain or loss on this investment.\ a.

$742.02

\ b.

$484.36

\ c.

,$257.67

\ d.

$81.76

A $2,500 bond had a coupon rate of 6.60% with interest paid semi-annually. Cody purchased this bond when there were 7 years left to maturity and when the market interest rate was 8.10% compounded semi-annually. He held the bond for 3 years, ther sold it when the market interest rate was 3.50% compounded semi-annually. Calculate his gain or loss on this investment. a. $742.02 b. $484.36 c. $257.67 d. $81.76