USE THE FOLLOWING INFORMATION FOR THIS QUESTION and the $5$ QUESTIONS that follow $-$

There is a table with PV of a lump sum and PV of an Ord Annuity factors at the bottom of the

exam.

$"$On January $1,2020,$ Bud, INC $("$Bud$")$ issued US$$20$ million in debt securities in the market

$("$Bonds$").$ The Bonds will mature in $10$ years and will pay interest of $4\%$ per year that shall be paid

annually on December $31$ of each year. The yield to investor is $3\mathrm{.}5\%$ per year." Assume that Bud has

a December $31$ year$-$end and follows USGAAP.

On January $1,2020,$ the price of the bonds was how much?

$($do not put a $ in your answer $-($you may show your work for maximum partial credit on your

scratch paper $($either the calculator steps OR using the table$)$