Find the Gain or Loss on the Sale Without Constructing

question 44

Multiple Choice

Find the gain or loss on the sale without constructing a bond schedule for six $3500, 3.5% bonds with interest payable semi-annually redeemable at par bought twenty-one years before maturity to yield 5.5% compounded semi-annually. The bonds were sold three years later at 102.

• A) $5180.68 Gain
• B) $5180.68 Loss
• C) $5612.65 Gain
• D) $5612.65 Loss
• E) $5153.98 Loss