Entity A issued $5,000,000 of 6%, 10-year bonds on January 1, 2022, for $4,328,974 to yield an effective annual rate of 8%. Interest is payable annually on January 1. The effective-interest method of amortization is to be used. You can round to the nearest dollar.

A. Prove that the amount received for the bonds is correct. You can use the present value tables in Appendix G of the text

Where did 6.71008 come from or how was it calculated? Also .46319?

= (5000000*6%*6.71008+5000000*.46319)

Present value of bonds = 4328974