Marmalice Co. issued $4,000,000 of 5-year, 10% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable using the present value tables. Round to the nearest dollar.

Present value of an annuity of $1 at compound interest:

Periods	4.0%	4.5%	5.0%	5.5%	6.0%	6.5%	7.0%	10.0%	11.0%	12.0%	13.0%
1	0.96154	0.95694	0.95238	0.94787	0.94340	0.93897	0.93458	0.90909	0.90090	0.89286	0.88496
2	1.88609	1.87267	1.85941	1.84632	1.83339	1.82063	1.80802	1.73554	1.71252	1.69005	1.66810
3	2.77509	2.74896	2.72325	2.69793	2.67301	2.64848	2.62432	2.48685	2.44371	2.40183	2.36115
4	3.62990	3.58753	3.54595	3.50515	3.46511	3.42580	3.38721	3.16987	3.10245	3.03735	2.97447
5	4.45182	4.38998	4.32948	4.27028	4.21236	4.15568	4.10020	3.79079	3.69590	3.60478	3.51723
6	5.24214	5.15787	5.07569	4.99553	4.91732	4.84101	4.76654	4.35526	4.23054	4.11141	3.99755
7	6.00205	5.89270	5.78637	5.68297	5.58238	5.48452	5.38929	4.86842	4.71220	4.56376	4.42261
8	6.73274	6.59589	6.46321	6.33457	6.20979	6.08875	5.97130	5.33493	5.14612	4.96764	4.79877
9	7.43533	7.26879	7.10782	6.95220	6.80169	6.65610	6.51523	5.75902	5.53705	5.32825	5.13166
10	8.11090	7.91272	7.72173	7.53763	7.36009	7.18883	7.02358	6.14457	5.88923	5.65022	5.42624

Present value of a $1 at compound interest:

Periods	4.0%	4.5%	5.0%	5.5%	6.0%	6.5%	7.0%	10.0%	11.0%	12.0%	13.0%
1	0.96154	0.95694	0.95238	0.94787	0.94340	0.93897	0.93458	0.90909	0.90090	0.89286	0.88496
2	0.92456	0.91573	0.90703	0.89845	0.89000	0.88166	0.87344	0.82645	0.81162	0.79719	0.78315
3	0.88900	0.87630	0.86384	0.85161	0.83962	0.82785	0.81630	0.75131	0.73119	0.71178	0.69305
4	0.85480	0.83856	0.82270	0.80722	0.79209	0.77732	0.76290	0.68301	0.65873	0.63552	0.61332
5	0.82193	0.80245	0.78353	0.76513	0.74726	0.72988	0.71299	0.62092	0.59345	0.56743	0.54276
6	0.79031	0.76790	0.74622	0.72525	0.70496	0.68533	0.66634	0.56447	0.53464	0.50663	0.48032
7	0.75992	0.73483	0.71068	0.68744	0.66506	0.64351	0.62275	0.51316	0.48166	0.45235	0.42506
8	0.73069	0.70319	0.67684	0.65160	0.62741	0.60423	0.58201	0.46651	0.43393	0.40388	0.37616
9	0.70259	0.67290	0.64461	0.61763	0.59190	0.56735	0.54393	0.42410	0.39092	0.36061	0.33288
10	0.67556	0.64393	0.61391	0.58543	0.55839	0.53273	0.50835	0.38554	0.35218	0.32197	0.29459