On January $1,2024,$ NFB Visual Aids issued $$840,000$ of its $20-$year, $8\%$ bonds.

The bonds were priced to yield $10\%.$

Interest is payable semiannually on June $30$ and December $31.$

NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value.

On December $31,2024,$ the fair value of the bonds was $$700,000$ as determined by their market value in the over$-$the$-$counter

market. $$

General $($risk$-$free$)$ interest rates did not change during $2024.$

Required:

$1-$a$.$ Determine the price of the bonds at January $1,2024.$

$1-$b to $4.$ Prepare the necessary journal entries.

Note: Use tables, Excel, or a financial calculator: $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Complete this question by entering your answers in the tabs below.

Determine the price of the bonds at January $1,2024.$

Note: Round final answer to the nearest whole dolar.

Price of the bonds