Gresh Corp. is planning to raise additional investor capital by issuing bonds. The company originally planned to raise $1,200,000 using bonds with a $1,000 face value (assuming each bond is sold at its par value). The bonds will mature in 25 years, are callable in 4 years with a 4% premium, carry a coupon interest rate of 8.50% (to be paid semiannually). If the market’s current required rate of return for debt with similar risk characteristics as Gresh Corp. is 7.25%, how much money will the company actually raise, intotal, through the issuance of these bonds(show at least 2 decimal places in your answer)?
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