1. Suppose you have bonds with a $1,000,000 total par value and a coupon rate of 10%. Assume the bonds have a maturity of 10 years, pays semi-annual coupons, and the current yield of 6%.

(1) What is the present value of the bonds all coupon payments? (5 points)

(2) What is the present value of the bonds total par? (5 points)