Question - Computing the issue price of bonds. Compute the issue price of each of the following bonds.
1. $10,000,000 face value, zero coupon bonds due in 20 years, priced on the market to yield 8% compounded semiannually. Round your answer to the nearest dollar.
2. $10,000,000 face value, serial bonds repayable in 40 equal semi-annual installments of $500,000, which includes coupon payments and repayment of principal, for 20 years, priced on the market to yield 6% compounded semi-annually. Round your answer to the nearest dollar.