Baguio Company issued 10-year bonds payable with face amount of P4,000,000 on January 1, 2023. The interest is payable annually on December 31 at the 6% stated interest rate. The bonds were issued to yield 9%.

The present value of 1 at 6% for 10 periods is 0.56 and the present value of an ordinary annuity of 1 at 6% for 10 periods is 7.36.

The present value of 1 at 9% for 10 periods is 0.42 and the present value of an ordinary annuity of 1 at 9% for 10 periods is 6.42.

What is the market price of the bonds on January 1, 2023?

Group of answer choices

4,000,000

3,991,200

1,680,000

3,220,800