CMS Corporation's balance sheet as of today is as follows:
| Long-term debt (bonds, at par) |
$10,000,000 |
| Preferred stock |
2,000,000 |
| Common stock ($10 par) |
10,000,000 |
| Retained earnings |
4,000,000 |
| Total debt and equity |
$26,000,000 |
The bonds have an 3.4% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?