Question $21$ of $23$

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On January $1,2023,$ Blossom Corporation purchased a $$1,440,000$ bond issued by ALN

L$.$td$.$ The bond was due to mature on December $31,2025,$ and paid interest at $6\%$ every June $30$ and December $31.$ The market interest rate was $8\%.$ Blossom had both the intention and ability to hold the bond until its maturity date.

On January $1,2025,$ Blossom became aware that ALN was experiencing severe financial difficulties. After discussing the situation with ALN and some of the other creditors, Blossom believed that AL $N$ would now be able to repay only $$1,296,000$ of the original $$1,440,000$ bond. $($The tables in this problem are to be used as a reference for this problem.$)$

Table A$-2$

PRESENT VALUE OF $1$

$($PRESENT VALUE OFASINGLESUM$)$

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