Loyd Inc. manufactures cycling equipment. Recently the vice president of operations ofthe company has requested construction of a new plant to meet the increasing demand forthe companys bikes. After a careful evaluation of the request, the board of directors hasdecided to raise funds for the new plant by issuing $5,000,000 of 11% term corporatebonds on March 1, 2015, maturing on March 1, 2030. Interest is payable each March 1and September 1, with the first interest payment being made on September 1, 2015. At thetime of the bond issuance, the market interest rate for similar financial instruments is 8%.Required: As the controller of the company, determine the selling price of the bonds.