The notes to the financial statements for Rollins Corporation reveal the following information related to long-term debt. The company uses the effective interest method of amortization and interest is compounded semiannually. Long-term debt comprises the following: Compute the book value of the bonds at December 31, 2014 and 2015. Assume semiannual compounding for 6% bond. Determine the interest expense on the three bonds issues for 2015. On July 1, 2017 Rollins Corporation repurchased $500,000 of the 7% bonds on the open market. The yield on the bonds at that time was 2%. Prepare the journal entry to record the retirement.