MINE company issued today a bond in favor of Mr. Cruz and the bond has a face value of $1,000,000.00. Cruz expectes to earn at a bond rate of 7% and such bond matures 6 years from today. If interest is 12% compounded yearly,

(a.) What is the present value of the bond?

(b.) The president of the corporation is bent on paying the yearly obligations to barboncito, in addition to the yearly fund that the corporation has to set aside in anticipation of the maturity of the bond. How much then is the total yearly amount that the corporation has to prepare to meet its obligations?