Rite Aid discovers that it could refinance its 6.875% bonds by issuing 5.9%, 20 year bonds that pay interest semiannually The existing bonds (the 6.875% bonds) are callable at 102. The new bonds will be issued on the date that the interest payment occurs in December (assume that date is December 1st). The investment bankers believe that, unless the market changes drastically, the bonds will sell for approximately .025 less than the stated interest rate. As a fee for arranging this bond issue, the investment bankers will charge 2.76% of the maturity amount of the debt. Compute the following:

The "gain" or "loss" Rite Aid will record from retiring the bonds

More Information: Summary of Indebtedness and Lease Financing Obligations at Feb. 29, 2020 and March 2, 2019

1. 7.7% notes due Feb 2027 (237,286 and 295,000 face value less unamortized debt issuance costs of $908 and $1,295) 2020 is $236,478 and 2019 $293,705

2. 6.85% fixed-rate senior notes due December 2028 ($29,001 and $128,000 face value less unamortized debt issuance costs of $131 and $462) 2020 is $28,807 and 2019 is $127,358