On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000 loss as part of the transaction. Which of the following must be true regarding this transaction? (check all that apply)

The only true statement is that the market interest rate had decreased since the bond was issued. Companies will always record a loss on retirement when the market rate decreases since the bond was issued. The loss does not imply anything about the face value of the bond. The company would have had to pay the current market value of the bond in order to retire it.