Ethical issues. Several years ago, the firm issued bonds with an annual coupon rate of 5 percent. In today's market, those bonds yield 1 1 percent. The market value of the bonds had declined below book value by $50 million. Management considers issuing at par new bonds with coupon rate of 1 1 percent and using the proceeds to retire the outstanding issue, recognizing a gain of $50 million.

Comment on any ethical issues pertinent for management's consideration.