Assume a corporation issues 5-year bonds with a stated rate of 8%, when their market rate of interest is 9%. A year after the bonds are issued the company introduces a new product which is a failure and the company dramatically loses market share. What result will this have on the company's market risk? If the company retires the bonds at this time will they have a gain or loss? Why? How is this gain or loss reported on the financial statements?

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