Viavélo Inc. manufactures cycling equipment. Recently, the company's vice-president of operations has requested construction of a new plant to meet the increasing demand for the com- pany's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $2 million of 11% term corporate bonds on March 1, 2017, due on March 1, 2031, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%.

Instructions

As Viavélo's controller, determine the selling price of the bonds.