RedCo issued $1,000,000 of 10% fixed-rate debt. In one year, the interest rates increase, and immediately after that RedCo repurchases the 10% coupon bonds issued one year earlier. At the repurchase date, the bonds market value is $950,000. Which of the following is RedCos Gain (Loss) on Debt Extinguishment?

Gain of $50,000

Loss of $100,000

Loss of $50,000

Gain of $100,000