UTurn Corp. issued $4,000,000 of 5% semi-annual coupon payment,10-year convertible bonds on April 1, 2020. The bonds were issued at a semi-annual yield of 5.49250% (semi-annual). The bonds were dated April 1, 2020, with interest payable September 30 and March 31. Bond discount is amortized semi-annually using effective interest amortization. Assume the conversion of bonds can be settled in any form of cash or stock. The market rate on similar credit quality non-convertible bonds would have been 7.452655% (semi-annual). What is the value of the conversion option (the equity account) on the date of issuance?