For the next 3 Questions:

Round your answer to the nearest dollar, such as 12345. (No need to write $ as $ is already in front of the box.) (Allowance is set + or - $1.)

Use the effective interest rate method.

The following information pertains to a bond issue of the VWX Corporation:

Maturity value: $1,000,000

Maturity date: December 31, 2023

Stated interest rate (Coupon rate): 5.25%

Interest payments are made annually on December 31st

Date of issue: January 1, 2016

Effective (market) interest rate (Yield to maturity) at issue: 4.75%

VWX financed $Answer by this bond issue on January 1, 2016. (Assume there was no expenses on issuing the bond.)