if the market interest rate drops to 6% on December

workbook #27 On January 1, 2018, Splash City issues$430,000 of 8% bonds, due in 15 years, with interest payable semi-annually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $394,979 If the market interest rate drops to 6% on December 31, 2019, it will cost $506,871 to retire the bonds. Record the retirement of the bonds on December 31, 2019. The carrying value of the bond on December 31, 2019 is $397,435. No Date General Journal Debit Credit