On January 1, Year 1, a company issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $367,422. Exercise 9-16B Part 2 2. If the market interest rate drops to 6% on December 31, Year 2, it will cost $471,507 to retire the bonds. Record the retirement of the bonds on December 31, Year 2. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate calculations to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 Record the retirement of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit