Robby Park is looking to raise capital on behalf of Park Agency by issuing a bond to his followers on social media on the 1st of April 2023. The total amount of money to be raised is $1,000,000 with a 2.52% coupon rate compounding monthly and a maturity of 15 years. To make it accessible to potential investors, each investor could purchase a small portion bond of $2,000, meaning in total there would be 500 bonds available to be purchased. If the required return of a similar bond is 3.54%, what is each bond’s price for Park Agency?

Alternatively, to raise the same amount of capital, Robby Park could offer zero coupon bonds to his followers instead. If the face value of each bond is $500 and it has 15 years of maturity left and a required rate of return of 3.11%, what is the most that its investors should pay for each bond? How would your answer change if the maturity reduces to ten years?