On January 1, 2021, Sheridan Co. issued ten-year bonds with a face value of $4,500,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10%		0.386
Present value of 1 for 10 periods at 12%		0.322
Present value of 1 for 20 periods at 5%		0.377
Present value of 1 for 20 periods at 6%		0.312
Present value of annuity for 10 periods at 10%		6.145
Present value of annuity for 10 periods at 12%		5.650
Present value of annuity for 20 periods at 5%		12.462
Present value of annuity for 20 periods at 6%		11.470

(a)

Calculate the issue price of the bonds.

Issue price of bond

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(b)

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