Compute the issue price of each of the following bonds. See thePresent and Future Value Tablesfrom the Appendix for help in solving this item. Round your answers to the nearest dollar.
1. $1,000,000 face value, serial bonds repayable in equal semiannual installments of $50,000 for 20 years, priced on the market to yield 6% compounded semiannually.
2. $1,000,000 face value semiannual coupon bonds, with an annual coupon rate of 6% for the first 10 years and 8% for the second 10 years and the principal due in 20 years, priced on the market to yield 10% compounded semiannually. Round your interim calculations (except present value factors) to the nearest whole dollar.