Ms

$.$

$$Mathews $$purchased $$

$25$

$$bonds$,$each $$with $$a $$face $$value $$of $$$

$500$

$$and $$paying $$a $$

$7$

$\%$

coupoun $$rate$.$On $$the $$purchase $$date $$

$,$

the $$bonds $$still $$had $$the $$

$8$

$$years $$remaining $$until $$maturity$,$and $$the $$market $$rate $$of $$return $$for $$bonds $$of $$this $$maturity $$was $$

$6\mathrm{.}5$

$\%$

$$componded $$semi $$

$-$

$$annually$.$Three $$years $$later$,$when $$the $$interest $$rate $$had $$declined $$to $$

$4\mathrm{.}5$

$\%$

$$compounded $$semi

$-$

annually, $$she $$sold $$the $$bonds$.$What $$was $$the $$capital $$gain $$

$($

or $$loss

$)$

$$on $$the $$bond $$investment$?$