Closed Tech Ltd. issued convertible bonds on 1 July 20X8. The 15-year, 5% $10,000,000 bonds pay interest semi-annually each 30 June and 31 December. At the investor’s option, each $1,000 bond is convertible into 50 common shares on the bond’s maturity date.
Bond market analysts indicated that if the bonds had not been convertible, they would likely have sold to yield 6%, and have raised $9,020,000. They were, in fact, issued for $10,350,000.

Required:
1. Provide the journal entry to record the initial issuance of the bond.
2. Provide the entry to record interest at 31 December 20X8.
3. Prove that the $9,020,000 reference price provides a yield of 6% by establishing the present value of the bond. Allow for rounding.