You have decided to advance refund $10,000,000 of outstanding debt that is callable in five year. The interest rate on these bonds is 8%. You can issue new bonds at 6%. For every dollar of new debt issued, you will incur a 5% issuance cost. Interest payments on the present issue are $800,000 per year with no schedule principal payments. How much new debt needs to be issued to realize defeasance of the present time?