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Pipe Pig Inc. issued $500,000, 5-year bonds at $389,598.69 on January 1, 2020. The bonds have a coupon rate of 6% and pay interest semi-annually

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Pipe Pig Inc. issued $500,000, 5-year bonds at $389,598.69 on January 1, 2020. The bonds have a coupon rate of 6% and pay interest semi-annually every June 30 and December 31. Pipe Pig Inc. uses the effective interest rate method to amortize bond premiums or discounts. The effective interest rate is 12%.

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