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Adam issues a bond with a stated interest rate of 8%, face value of $100,000 that is due in 3 years. Interest is paid semi-annually
Adam issues a bond with a stated interest rate of 8%, face value of $100,000 that is due in 3 years. Interest is paid semi-annually and the market rate for this type of bond is 10%. What is the gain or loss recorded if he retires the bond at the end of the second year for $90,000?
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