In 2018, SADRA issued a 5 year, $100,000, 8% payable annually, bond for $92,418 (pv). If SADRA purchased its bond on Jan 1, 2020 for $98,000 when its carrying value was $96,500, was the bond retired for a gain or loss?

Select one:

a. a $1,500 loss

b. a $1,500 gain

c. a $3,500 gain

d. a $3,500 loss