Problem
Sheffield Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,454,600 of 10% term corporate bonds on March 1, 2017, due on March 1, 2032, with interest payable each March 1 and September 1. First interest payment will be made on September 1, 2017. At the time of issuance, the market interest rate for similar financial instruments is 8%.
As the controller of the company, determine the selling price of the bonds.