Ivanhoe Products Ltd. issued $2.4 million of 6%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. There is no collateral secured against the bonds and Ivanhoe Products may buy back the bonds at any time. The market interest rate was 7% for these bonds. Ivanhoe has a calendar year end. Calculate the price of the bond?

Record the bond issue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2021
	(To record issuance of bonds.)