Debt Investment: Bonds Purchased at a Discount On July 1, 2023, Masterwear Corp. issued $700,000 of 12% bonds, dated July 1. * Interest of $42,000 is payable semiannually on June 30 and December 31. * The bonds mature in three years, on June 30, 2026. * United Inc. purchased the entire bond issue on a date when the market interest rate for bonds of similar risk and maturity was 14%. Calculation of the Bond Price Interest $ 42,000 x 4.76654 = $200,195 Principal (face amount) S$700,000 x 0.66634 466,438 Present value (price) of the bonds $666,633 Present value of $1 table: Present value of an ordinary annuity n=6,i=7% of S1table:n=6,i=7%