(Solution) - Computing the issue price of bonds Compute the issue price -(2025 Original AI-Free Solution)

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Computing the issue price of bonds. Compute the issue price of each of the following bonds.
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 equal installments of $500,000, which includes coupon payments and repayment of principal, for 20 years, priced on the market to yield 6% compo untied annually.