Please explain part 2 in detail

On January 1, 2021, White Water issues $550,000 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 7% and the bonds issued at $600,578.

Exercise 9-17A Part 2

2. If the market interest rate increases to 9% on December 31, 2023, it will cost $510,137 to retire the bonds. Record the retirement of the bonds on December 31, 2023.