Firm A issues $1,000,000 face value. 9% semiannual coupon bonds at a price to yield 8% compounded

Question:

Firm A issues $1,000,000 face value. 9% semiannual coupon bonds at a price to yield 8% compounded semiannually. Firm B issues $1,000,000 face value, 7% semiannual coupon bonds at a price to yield 8% compounded semiannually. Both bond issues mature in 20 years. Will these firms receive the same initial issue price for these bonds? Explain.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...