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) $24,500,000

Preferred stock 2,000,000

Common stock ($10 par) 11,000,000

Retained earnings 3,000,000

Total debt and equity $40,500,000

The bonds have a 7.9% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 20 years from today. The yield to maturity is 11%, so the bonds now sell below par. What is the current market value of the firm's debt? Do not round your intermediate calculations.

a. $20,147,285

b. $18,366,984

c. $18,451,852

d. $19,260,559

e. $18,406,484