Crop Corporation (with a December 31 year-end) issued $435,000, 2% bonds due in 8 years on May 1, 2016. Interest is paid semi-annually on November 1 and May 1 of each year. On the issuance date, the market rate of interest was 7%, resulting in a price of $303,474 for these bonds. Note: The premium/discount is amortized using the effective interest method.