Mahoney, Inc. paid $66,000 to retire a note with a face value of $75,000. The note was issued with an 8% coupon rate paid semiannually. If the note was three years from maturity and had a net book value of $59,200, what is the net gain or loss on the redemption of this note?

Question

Quizplus · Accepted Answer

The Answer of Mahoney, Inc. paid $66,000 to retire a note with a face value of $75,000. The note was issued with an 8% coupon rate paid semiannually. If the note was three years from maturity and had a net book value of $59,200, what is the net gain or loss on the redemption of this note?