Entries for Issuing Bonds and Amortizing Premium by Straight$-$Line Method rate of $6\%,$ receiving cash of $$8,136,595.$ Interest is payable semiannually on April $1$ and October $1.$

c$.$ Why was the company able to issue the bonds for $$8,136,595$ rather than for the face amount of $$7,400,000?$

The market rate of interest is the contract rate of interest.