$1.$Falcons Company had outstanding bonds with a par value of $$800,000$ and carrying value of $$832,000.$ On January $1,2022,$ the company retired the bonds at $103\mathrm{.}5.$ The transaction resulted in a:

a$.$gain of $$4,000.$

b$.$loss of $$4,000.$

c$.$loss of $$2,000.$

d$.$gain of $$2,000.$

$2.$The market interest rate on bonds is higher than the coupon rate when bonds sell

a$.$above face value.

b$.$at face value.

c$.$at maturity value.

d$.$below face value.