Response to the following problem:
On January 1, 2005, Dean Company issued ten-year bonds with a face value of $1,000,000 and a stated interest rate or 8% per year payable semiannually July 1 and January 1. The bonds were sold to yield 10%. Present value interest factors are as follows:
Present value of 1 for 10 periods at 10% .386
Present value of 1 for 20 periods at 5% .377
Present value of an annuity of 1 for 10 periods at 5% 6.145
Present value of an annuity of 1 for 20 periods at 5% 12.462
The total issue price of the bond?