In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. KJM Corporation$$s balance sheet as of today, January $1,2003,$ is as follows:

Long$-$term debt $($bonds$,$ at par$)$ $$10,000,000$

Preferred stock $2,000,000$

Common stock $($$$10$ par$)10,000,000$

Retained earnings $4,000,000$

Total debt and equity $$26,000,000$

The bonds have a $4$ percent coupon rate, payable semiannually, and a par value of $$1,000.$ They mature on January $1,2013.$ The yield to maturity is $12$ percent, so the bonds now sell below par. What is the current market value of the firm$$s debt?