On March 1, 2020, company bought a bond with $1M par value, 8% semi-annual coupon, payable on Aug. 31 and Feb 28. The bond will mature in 7 years. If the market rate of interest is 10%, then how much did the company pay for the bond?

March 1, 2020 Investments 901,013.59

Cash 901,013.59

August 31, 2020 Cash 40,000 [$1,000,000 * 4%]

Investments 5,050.68 diff.

Interest Revenue 45,050.68 [$901,013.59 * 5%]

December 31, 2020 Interest Receivable 26,666.67 [$40,000 * 4/6 mos.]

Interest Revenue 26,666.67 (Sept 1 to Dec 31) What if the same bond was bought on May 1, instead of March 1?

May 1, 2020 Investments 901,013.59

Interest Receivable 13,333.33 [$40,000 *2/6 mos.]

Cash 914,346.92 sum.

August 31, 2020 ???

December 31, 2020 Interest Receivable 26,666.67 [$40,000 * 4/6 mos.]

Interest Revenue 26,666.67 (Sept 1 to Dec 31)

Hi, I need help solving the August 31 entry. I've provided the work I was able to do so far. Thank you