On January 1, assume that ABX company issues $1,000,000 of 7-year, 6% bonds, the yield to maturity is 4.5%, and the interest is payable annually on December 31. 13. Find the interest expense in the fourth year. Use the effective interest rate method for amortization. 14. Find the carrying amount of the bond at the end of the fourth year. Use the effective interest rate method for amortization. 15. At the beginning of the fifth year, the market yield to maturity is 5.5%. ABX company decides to extinguish the bonds by paying the market price. Determine the amount of the gain or loss on the bond extinguishment. (Clearly indicate gain or loss and the amount.)