Computing the issue price of bonds and interest expense. O'Brien Corporation issues \(\$ 8,000,000\)-par value, 8 -percent semiannual coupon bonds maturing in 20 years. The market initially prices these bonds to yield 6 percent compounded semiannually.

a. Compute the issue price of these bonds.

b. Compute interest expense for the first six-month period.

c. Compute interest expense for the second six-month period.

d. Compute the book value of the bonds after the second six-month period.

e. Use present value computations to verify the book value of the bonds after the second six-month period as computed in part d above.