On January 2, 2014, Wine Corporation wishes to issue $4,000,000 (par value) of its 8%, 10-year bonds. The bonds pay interest annually on January 1. The market rate on such bonds is 10%. Using the interest factors below, compute the price of bonds on the date of issuance.

Present value of 1 at 8% for 10 periods 0.4632

Present value of 1 at 10% for 10 periods 0.3855

Present value of an ordinary annuity at 8% for 10 periods 6.7101

Present value of an ordinary annuity at 10% for 10 periods 6.1446