Joel issues a bond with a stated interest rate of 8%, face value of $100,000, and due in 3 years. Interest payments are made semi-annually. The market rate for this type of bond is 10%. What is the interest expense for the third payment?

A. $4,746.

B. $4,822.

C. $4,000.

D. $4,952.

Joel issues a bond with a stated interest rate of 8%, face value of $100,000, and due in 3 years. Interest payments are made semi-annually. 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?

A. a gain of $1,859.

B. a gain of $8,141.

C. a loss of $1,859.

D. a loss of $8,141.