Regarding this transaction

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On 6/30/12, a company paid $96,000 to retire a bond before maturity. The company recorded a $6,000 gain as part of the transaction. Which of the following must be true regarding this transaction? (check all that apply)

The market interest rate had decreased since the bond was issued

The market interest rate had increased since the bond was issued

The face value of the bond was $102,000

The face value of the bond was $96,000

The company paid less than the current market value of the bond to retire it.

Reference no: EM13866741

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