On January 1, 2021, Ellison Co. issued eight-year bonds with a face value of $1,000,000 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

The present value of the principal is