The Davis Group acquired $$4,500,000$ par value, $4\%,20-$year bonds on their date of issue, January $1$ of the current year. The market rate at the time of issue was $6\%,$ and interest is paid annually on December $31.$ Davis will use the effective interest rate method to account for this investment. Davis intends to hold the investment until the bonds mature, and has the ability to do so$.$