Blossom Cars Co$.$ issued $$2\mathrm{.}06$ million of $5\%,5-$year bonds on January $1,2024.$ The bonds were dated January $1$ and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was $4\%$ for these bonds. Blossom has a calendar year end.

Click here to view the factor table. Present Value of $1$

Click here to view the factor table. Present Value of an Annuity of $1$

$($a$)$

Your answer is partially correct.

Calculate the price of the bonds. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Round answer to $0$ decimal places, e$.$g$.1,575.)$

Price of the bonds

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Record the bond issue. $($List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles

Debit

Credit

Jan. $1,2024$

Present Value of $1$

$PV=\frac{1}{(1+i{)}^n}$

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