On January 1, 2017 Lance Co. issued five-year bonds with a face value of $700,000 and a stated interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Calculate the issue price of the bonds. Present value table factors are:

Present value of 1 for 5 periods at 10% .62092

Future value of 1 for 5 periods at 10% 1.1051

Future value of 1 for 5 periods of an ordinary annuity at 10% 6.10510

Present value of 1 for 5 periods at 12% .56743

Present value of 1 for 10 periods at 5% .61391

Present value of 1 for 10 periods at 6% .55839

Present value of an ordinary annuity of 1 for 5 periods at 10% 3.79079

Present value of an ordinary annuity of 1 for 5 periods at 12% 3.60478

Present value of an ordinary annuity of 1 for 10 periods at 5% 7.72173

Present value of an ordinary annuity of 1 for 10 periods at 6% 7.36009