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First place LTD is authorized to issue $2 million of 4% 10 year bonds payable. On December 31, 2014 when the market interest rate is

First place LTD is authorized to issue $2 million of 4% 10 year bonds payable. On December 31, 2014 when the market interest rate is 8% the Company issues $1.6 million of the bonds. First place LTD amortizes bond discount by the effective interest method. The semi annual interest dates are June 30 and December 31. Use the PV function in Excel to calculate the issue price of the bonds

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