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  3. 7 the avenil group acquated $4,600,000 par val

7 The Avenil Group acquated $4,600,000 par value, 6\%, 20-year bonds...

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Accounting

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The Avenil Group acquated $4,600,000 par value, 6\%, 20-year bonds on their dote of issue, January 1 of the current yeat. The maket rate at the time of issue was 8%, and interest is paid annally on Docomber 31 . Avesill will use the effective interest rate method to account for ths imvestment. Averil intends to hold the investment until the bonds mature, and has the abiity to do so Read the requirements Requirement a. Delermine the purchase pnce of the investment in bonds. Use the present value and future value tables, the formula method, a finarcial calcivatoc, or a spreadsheret computations and you final araweis to the newest whole dollat) The purchise price of the bonds is

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