If bonds are retired by an issuer by purchase on the open market at a price below the bonds' carrying value,a loss will result.

Name: If bonds are retired by an issuer by purchase on the open market at a price below the bonds' carrying value,a loss will result.
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When bonds are retired by an issuer by purchase on the open market at a price below their carrying value, a gain will result because the issuer is paying less than the amount at which the bonds were recorded on the books.

If Bonds Are Retired by an Issuer by Purchase on the Open