Question: Computing the issue price of bonds Compute the issue price of

Computing the issue price of bonds. Compute the issue price of each of the following bonds.
a. $1,000,000 face value, zero coupon bonds due in 20 years, priced on the market to yield 10% compounded semiannually.
b. $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.
c. $1,000,000 face value, 10% semiannual coupon bonds with interest payable each six months and the principal due in 20 years, priced on the market to yield 8% compounded semiannually.
d. $1,000,000 face value semiannual coupon bonds, with an annual coupon rate of 6% for the first ten years and 8% for the second ten years and the principal due in 20 years, priced on the market to yield 10% compounded semiannually.


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  • CreatedDecember 07, 2011
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