1. Lance Inc. manufactures cycling equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. The board of directors has decided to raise funds for the new plant by issuing $2,000,000 par value of 12% term corporate bonds on March 1, 2003, due on March 1, 2018, with interest payable each March 1 and September 1, starting from March 1, 2003. At the time of the issuance, the market interest for similar financial instruments is 10%. As the controller of the company, determine the selling price of ALL the bonds together. [5 Marks]