Shaw Company issued P5,000,000, 12% bonds on January 1, 2012. The principal of the bonds were paid in series of P1,000,000 annually, together with any accrued interest on the outstanding bonds each December 31, starting December 31, 2012. The prevailing market rate at the time of issuance was 10%. How much is the issuance price of the bonds? Round off present value factors to FIVE DECIMAL PLACES and interest computations to WHOLE NUMBERS.

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