Capize Semiconductors issued 9% bonds, dated January 1, with a face amount of $828 million on January 1, year 1. The bonds sold for $756,965,093 and mature in 20 years. For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Capie determines interest at the effective rate. Capize elected the option to report these bonds at their fair value. On December 31, year 1, the fair value of the bonds was $728 lion as determined by their market value in the over-the- counter market. Required (1) Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, year 1, balance sheet. Capize determined that none of the change in fair value was due to a decline in general interest rates