On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $4,000,000 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

Compute the present value of the principal