A $6,500 bond had a coupon rate of 5.75% with interest paid semi-annually. James purchased this bond when there were 7 years left to maturity and when the market interest rate was 6.00% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 5.50% compounded semi-annually.

a. What was the purchase price of the bond?

b. What was the selling price of the bond?

c. What was James's gain or loss on this investment?