Question: Compute the issue price of each of the following bonds. Round your answers to the nearest dollar. a. $10,000,000 face value, zero coupon bonds due

Compute the issue price of each of the following bonds. Round your answers to the nearest dollar.

a. $10,000,000 face value, zero coupon bonds due in 20 years, priced on the market to yield 8% compounded semiannually.

b. $10,000,000 face value, serial bonds repayable in 40 equal semiannual installments of $500,000, which includes coupon payments and repayment of principal, for 20 years, priced on the market to yield 6% compounded annually.

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