P10-9 Recording and Reporting Bonds issued at a Premium LO10-5 [The following information applies to the questions displayed below) Cron Corporation is planning to issue bonds with a face value of$780,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on Januarylof this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV of $1, PV of EVA of $1 and PVA of $1 Use the appropriate factor(s) from the tables provided. References Section Break P10-9 Recording and Reporting Bonds Issued at a Premium LO10-5 5. 9.09 points Required information P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year?(Round yourfinal answers to nearest whole dollar amount.)

Answer rating: 100% (QA)

To calculate the issue price of the bonds on January 1 of this year we need to find the present valu... View the full answer