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What is the purchase price of the bond

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Question - On January 1, 2020, Flint Corporation purchased a $1,160,000 bond issued by ALN Ltd. The bond was due to mature on December 31, 2022, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Flint had both the intention and ability to hold the bond until its maturity date.

On January 1, 2022, Flint became aware that ALN was experiencing severe financial difficulties. After discussing the situation with ALN and some of the other creditors, Flint believed that ALN would now be able to repay only $1,044,000 of the original $1,160,000 bond. What is the purchase price of the bond?

Reference no: EM133004729

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