On January 1, 2013, a company pays $5,222,591 for a 5-year corporate bond with a face value

Question:

On January 1, 2013, a company pays $5,222,591 for a 5-year corporate bond with a of $5 million. The bond pays interest at 5 percent on December 31 of each year, and the principal is due on December 31,2017. The investment yields a 4 percent compound annual return to maturity. The company classifies the bond as a held-to-maturity investment.
Required
Prepare the journal entries to record the investment on January 1, 2013, receipt of the interest payments on December 31 of each year 2013 through 2017, and receipt of the bond principal on December 31, 2017, using the effective interest method. Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...