On January 1, 2017, Krantz Co. issued 10-year bonds with a face value of $200,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10% ......... .386

Present value of 1 for 10 periods at 12% ......... .322

Present value of 1 for 20 periods at 5% .......... .377

Present value of 1 for 20 periods at 6% .......... .312

Present value of annuity for 10 periods at 10% ... 6.145

Present value of annuity for 10 periods at 12% ... 5.650

Present value of annuity for 20 periods at 5% .... 12.462

Present value of annuity for 20 periods at 6% .... 11.470

Calculate the issue price of the bonds.