On January 1, 2014, Ellison Co. issued eight-year bonds with a face value of $3,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6%...........................................         .627 Present value of 1 for 8 periods at 8%...........................................         .540 Present value of 1 for 16 periods at 3%.........................................         .623 Present value of 1 for 16 periods at 4%.........................................         .534 Present value of annuity for 8 periods at 6%.................................       6.210 Present value of annuity for 8 periods at 8%.................................       5.747 Present value of annuity for 16 periods at 3%...............................     12.561 Present value of annuity for 16 periods at 4%...............................     11.652   1. The present value of the principal is   a. $2,136,000. b. $1,602,000. c. $2,492,000. d. $1,508,000.

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