On January 1, 2022, Flint Corporation issued $1,790,000 face value, 7%, 10-year bonds at $1,669,889. This price resulted in an effective-interest rate of 8% on the bonds. Flint uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. On January 1, 2022, Flint Corporation issued $1,790,000 face value, 7%, 10-year bonds at $1,669,889. This price resulted in an effective-interest rate of 8% on the bonds. Flint uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.