Gerber Corporation issues 20-year, $2,000,000 bonds with a stated interest rate of 8%.The bonds pay interest semiannually on June 30 and December 31. If the effective annual rate of interest is 10%, what is the issue price of the bonds?

Some relevant and irrelevant present value factors:

* PV of ordinary annuity of $1: n = 20; i = 10% is 8.51356

**PV of $1:n = 20; i = 10% is 0.14864

* PV of ordinary annuity of $1: n = 40; i = 5% is 17.15909

**PV of $1:n = 40; i = 5% is 0.14205