BMW

Corporation has two different bonds currently outstanding. Bond

A

has a face value of

$20,000 and matures in 20 years. The bond makes no payments for the first six years, then pays

$1,100 every six months over the subsequent eight years, and finally pays $1,400 every six

months over the last six years. Bond

B

also has a

face value of $20,000 and a maturity of 20

years; it makes no coupon payments over the life of the bond. If the required return on both these

bonds is 5.6 percent compounded semiannually, what is the current price of bond

A

? Of bond

B

?