1. What is the price of a zero-coupon bond that matures in 20 years, has a maturity (par) value of $1 million, and is selling to yield 7.6% on a bond equivalent (semi-annual) basis?

2. A 4-year, 5.8% coupon bond is selling to yield 7.0%. The bond pays interest annually. On year later, yields decrease 7.0% to 6.2%. What is the price of this bond one year later if instead of the yield being unchanged the yield decreases to 6.2%? Assume the par value is $100.