1.) Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2012. THA's accountant has projected the following amortization schedule from issuance until maturity

Date	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
1/1/12				$370,205
6/30/12	$15,600	$18,510	$2,910	373,115
12/31/12	15,600	18,656	3,056	376,171
6/30/13	15,600	18,809	3,209	379,380
12/31/13	15,600	18,969	3,369	382,749
6/30/15	15,600	19,137	3,537	386,286
12/31/15	15,600	19,314	3,714	390,000

THA buys back the bonds for $374,521 immediately after the interest payment on 12/31/12 and retires them. What gain or loss, if any, would THA record on this date?

2.)

Discount-Mart issues $19 million in bonds on January 1, 2012. They have a nine-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds.

Date	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
1/1/12				$16,778,978
6/30/12	$760,000	$838,949	$78,949	16,857,927
12/31/12	760,000	842,896	82,896	16,940,823
6/30/13	760,000	847,041	87,041	17,027,864
12/31/13	760,000

What is the stated annual rate of interest on the bonds?