Cron Corporation is planning to issue bonds with a face value of $$900,000$ and a coupon rate of $13$ percent. The bonds mature in five years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on January $1$ of this year. Cron uses the effective$-$interest amortization method. Assume an annual market rate of interest of $12$ percent. $($FV of $$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:

$1.$ What was the issue price on January $1$ of this year?Cron Corporation is planning to issue bonds with a face value of $$900,000$ and a coupon rate of $13$ percent. The bonds mature in five years and pay interest semiannually every June $30$ and December $31.$ All of the bonds were sold on January $1$ of this year. Cron uses the effective$-$interest amortization method. Assume an annual market rate of interest of $12$ percent. $($FV of $$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:

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