Hayden Co. has outstanding $40 million face amount of 7% bonds that were issued on January 1, 2010, for $40,600,000. The 20-year bonds mature on December 31, 2029, and are callable at 103 (that is, they can be paid off at any time by paying the bondholders 103% of the face amount).

b-1. Assume that the bonds are called on December 31, 2016. Use the horizoetal model to show the efect of the retirement of the bonds. (Use amounts with+for increases and amounts with- for decreases.) (Hint Celculate the amount psid to bondholders determine how much of the bond premium would have been armonized prior to calling the bonds: and then calculate the gan or losG On renement ? Net l