On 1 May 2017, Bertrum Limited purchased $1,000,000 of Fox Corp. 7% coupon bonds (i.e., they pay $35,000 semi-annually), classified as an amortized cost investment. They paid $815,998 for the bonds. The bonds pay semi-annual interest each 1 May and 1 November with the first payment on 1 November 2017. The annual market interest rate was 12% on the date of purchase so you will use an effective rate of interest of 6% semi- annually. The bonds mature on 1 May 2022.