On January 1, 2019, Drennen Inc. issued $2.6 million face amount of 5-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2023.

Required information (The following information applies to the questions displayed below.) On January 1, 2019, Drennen Inc. issued $2.6 million face amount of 5-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2023. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) Required: a. Calculate the proceeds (issue price) of Drennen Inc.'s bonds on January 1, 2019, assuming that the bonds were sold to provide a market rate of return to the investor. (Round PV factor to 4 decimal places.)