b. Maria Inc. issued a $5 million 8% 10 year bond. The bonds were issued on January 1, 2019. The bond pays interest annually on December 31. The bonds are priced to yield a market rate of 10%. PV factor from PV of lump sum table (8%, 10 years) = .46319 PV factor from PV of ordinary annuity table (8%, 10 years) = 6.71008 PV factor from PV lump sum table (10%, 10 years) = .38554 PV factor from PV of ordinary annuity table (10%, 10 years) = 6.14457 Calculate present value of the Bond on January 1, 2019.

Show calculations.