On January 1, 2020LanceCo. issued five-year bonds with a face value of $1,000,000and a stated interest rate of12% payable semiannually on July 1 and January 1. The bonds were sold to yield10%.

Present value table factors are:Present value of 1 for5periods at10% 0.62092

Present value of 1 for5periods at12% 0.56743

Present value of 1 for10periods at5% 0.61391

Present value of 1 for10periods at6% 0.55839

Present value of an ordinary annuity of 1 for5periods at10%

3.79079

Present value of an ordinary annuity of 1 for5periods at12%

3.60478

Present value of an ordinary annuity of 1 for10periods at5%

7.72173

Present value of an ordinary annuity of 1 for10periods at6% 7.36009

Calculate the issue price of the bonds.