Question: On January 1, 2018, Wright Corporation issued a 8% $1,000,000 bond. The bond matures on January 1, 2023. Interest on the bond is payable semi-annually

On January 1, 2018, Wright Corporation issued a 8% $1,000,000 bond. The bond matures on January 1, 2023. Interest on the bond is payable semi-annually on July 1 and January 1 of each year.

Wright Corp. received proceeds of $922,779 from the sale of the bond. The required effective interest rate on the bond was 10%. Instructions

a) Calculate the discount on the bond.

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