On January $1,2021,$ Piper Co$.$ purchased a ten$-$year bond with a face value of $$5,000,000$ and a stated

interest rate of $10\%,$ payable semiannually on June $30$ and December $31.$ The bonds were purchased to

yield $12\%.$ Table values are:

Present value of $1$ for $10$ periods at $10\%\mathrm{.}386$

Present value of $1$ for $10$ periods at $12\%\mathrm{.}322$

Present value of $1$ for $20$ periods at $5\%\mathrm{.}377$

Present value of $1$ for $20$ periods at $6\%\mathrm{.}312$

Present value of annuity for $10$ periods at $10\%6\mathrm{.}145$

Present value of annuity for $10$ periods at $12\%5\mathrm{.}650$

Present value of annuity for $20$ periods at $5\%12\mathrm{.}462$

Present value of annuity for $20$ periods at $6\%11\mathrm{.}470$

Instructions

$($a$)$ Calculate the issue price of the bonds.

$($b$)$ Prepare the amortization table for years $2021-2023,$ assuming that amortization is recorded on

interest payment dates using the effective$-$interest method.