. The following is the balance sheet for XYZ Corporations as at December 31, 2016 Long-term debt (bonds, at par) $20,000,000

Preferred stock 12,000,000

Common stock ($10 par) 14,000,000

Total Liabilities and Equity $46,000,000

The bonds have a 6 percent coupon rate, payable semiannually, and a par value of $1,000. They mature in 8 years time. The yield to maturity is 16 percent, so the bonds now sell below par. Determine the current market value of the firms debt?