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Skye issued 5-year bonds with a par value of $1,000,000 on January 1, 2022. The...

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Accounting

Skye issued 5-year bonds with a par value of $1,000,000 on January 1, 2022. The bonds pay interest semi-annually on June 30 and December 31 for the life of the bond. The coupon rate is 10%, while the market rate of interest on the issue date is 8% (all rates are expressed in annual terms). Calculate the price of the bond on the issue date (round to the nearest dollar).

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