The Tightwad Corporation has two different bonds currently outstanding.

Bond M has a face value of $25,000 and it matures in 20 years. The bond makes no payments for the first six years, then pays $1,500 semiannually over the subsequent eight years, and finally pays $2,000 semiannually over the last six years.

Bond N also has a face value of $25,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond.

The required return on both these bonds is 10 percent compounded semiannually.

a. What is the current price of Bond M?

b. What is the current price of Bond N?