On January 1, 2010, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are:

Present value of 1 for 8 periods at 6%........................................... .627

Present value of 1 for 8 periods at 8%........................................... .540

Present value of 1 for 16 periods at 3%......................................... .623

Present value of 1 for 16 periods at 4%......................................... .534

Present value of annuity for 8 periods at 6%................................. 6.210

Present value of annuity for 8 periods at 8%................................. 5.747

Present value of annuity for 16 periods at 3%............................... 12.561

Present value of annuity for 16 periods at 4%............................... 11.652

1. The present value of the principal is

a. $3,204,000.

b. $3,240,000.

c. $3,738,000.

d. $3,762,000.

2. The present value of the interest is

a. $2,068,920.

b. $2,097,360.

c. $2,235,600.

d. $2,260,980.

3. The issue price of the bonds is

a. $5,301,360.

b. $5,308,920.

c. $5,337,360.

d. $5,997,600.