In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from historical book values to market values. KJM Corporation's balance sheet (book values) as of today is as follows:

Long-term debt (bonds, at par) $ 20,000,000

Preferred stock $ 2,000,000

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

Retained earnings $ 4,000,000

Total debt and equity $ 36,000,000

The bonds have a 6.50% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 10%, so the bonds now sell below par. What is the current market value of the firm's debt?