On January 1, 2020, Waterway Industries issued ten-year bonds with a face amount of $4600000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 11%. Present value factors are as follows:

At 8% At 11% Present value of 1 for 10 periods 0.463 0.352

Present value of an ordinary annuity of 1 for 10 periods 6.710 5.889

The total issue price of the bonds was

$4462000.

$3786352.

$4232000.

$4600000.