1. A $650000 bond was retired at 102 when the carrying value of the bond was $667000. The entry to record the retirement would include a

   	a.	gain on bond redemption of $4000.
   	b.	gain on bond redemption of $13000.
   	c.	loss on bond redemption of $13000.
   	d.	loss on bond redemption of $4000.

2. The interest rate investors demand for loaning funds is the

   	a.	stated rate.
   	b.	market interest rate.
   	c.	contractual interest rate.
   	d.	bond interest rate.