$1$

Required information

P$10-9($Static$)$ Recording and Reporting Bonds issued af a Premium L$010-5$

$[$The following information applies to the questions displayed below.$]$

Cron Corporation is planning to issue bonds with a face value of $$700,000$ and a coupon sate of $13$ percent. The bonds mature in five years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on January $1$ of this year. Cron uses the effective$-$interest amortization method. Assume an annual market rate of interest of $12$ percent $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

P$10-9$ Part $1$

Required:

What was the issue price on January $1$ of this year?

Note: Round your final answer to nearesi whole dollar amount.

Issue price