Whitewater Instruments sold $400 million of 10% bonds, dated January 1, on January 1, 2016. The bonds mature on December 31, 2035 (20 years). For bonds of similar risk and maturity, the market yield was 12%. Interest is paid semiannually on June 30 and December 31. New World Technologies, Inc., purchased $400,000 of the bonds as a long-term investment

Determine the price of the bonds issued on January 1, 2016