Crane 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. After a careful evaluation of the request, the board of directors has

decided to raise funds for the new plant by issuing $$3,128,500$ of $12\%$ term corporate bonds on March $1,2025,$ due on March $1,2040,$

with interest payable each March $1$ and September $1.$ At the time of issuance, the market interest rate for similar financial instruments

is $8\%.$