Gains or losses from refunding are recognized

A) over the remaining life of the old issue
B) in the year of refunding
C) over the life of the new bond issue
D) as a prior period adjustment

New Bond Issue

The process of offering new bonds to investors for the first time to raise capital for the issuer.

Refunding

The process of replacing an old debt with a new one, usually with better terms, such as a lower interest rate.

Old Issue

A topic or problem that has been present or discussed for a long time.