ii) The Delta Corporation sells 700 bonds. Each bond has a par value of $1,000. The Bonds are sold on January 1, 2013. The interest rate (coupon rate) listed on the bond is 5%. The bonds pay interest twice per year, June 30th, and December 31st. The bonds are 10-year bonds. The market interest rate (yield) for these types of bonds (debt securities) at the time the bonds are sold (January 1, 2013) is 6% annually.

What is the present value of the amount paid to bondholders to retire the bonds at the end of 10 years?