On January 1, 2017, when the market interest rate was 14%, Luba Corporation issued bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on December 31, 2026.

Required: Calculate the bond discount at issuance. How much of the discount should be amortized by the effective interest method on July 1, 2017?

I am confused about how Discount is calculated? What table if any do I have to refer to.....

Face value is $500,000

Discount (52,970)

Selling Price of bond $447,030