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Gain or Loss on Bond redemption On April 20, 2018, two years before maturity, Van Gogh Company retires 150,000 of its 5.6% semi-annual bonds payable

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Gain or Loss on Bond redemption On April 20, 2018, two years before maturity, Van Gogh Company retires 150,000 of its 5.6% semi-annual bonds payable at the price of 105. The bond book value April 20, 2018 is 155,000, reflecting an unamortized premium. Bond interest is fully paid and recorded up to the date of retirement. a) What is the gain or loss on retirement of those bonds? What was the market rate of the bond according to the book value? (What rate producesa PV of 155,000 on this 150,000, 5.6% semi-annual bonds with 2 years left?) b)

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