Question 1193715
### Given Information:
- **Principal**: \( \$1,000,000 \)
- **Annual Coupon Rate**: \( 6.5\% \)
- **Bond Term**: \( 20 \, \text{years} \)
- **Coupons**: Paid semi-annually.

---

### Step 1: Value of Each Coupon Payment

The value of each coupon payment is calculated as:

\[
\text{Coupon Payment} = \text{Principal} \times \frac{\text{Annual Coupon Rate}}{\text{Number of Coupons Per Year}}
\]

Substituting the values:

\[
\text{Coupon Payment} = 1,000,000 \times \frac{6.5}{2} \% = 1,000,000 \times 0.0325 = 32,500
\]

The value of each coupon payment is **\$32,500**.

---

### Step 2: Total Interest Paid Over 20 Years

The total number of coupon payments over 20 years is:

\[
\text{Total Payments} = 20 \, \text{years} \times 2 \, \text{payments/year} = 40 \, \text{payments}.
\]

The total interest paid is:

\[
\text{Total Interest} = \text{Coupon Payment} \times \text{Total Payments}
\]

\[
\text{Total Interest} = 32,500 \times 40 = 1,300,000
\]

The total interest paid is **\$1,300,000**.

---

### Step 3: Total Cost of Fixing the Damage

The total cost includes the original principal plus all interest payments:

\[
\text{Total Cost} = \text{Principal} + \text{Total Interest}
\]

\[
\text{Total Cost} = 1,000,000 + 1,300,000 = 2,300,000
\]

The total cost of fixing the damage is **\$2,300,000**.

---

### Final Answers:
1. **Value of Each Coupon Payment**: **\$32,500**
2. **Total Interest Paid**: **\$1,300,000**
3. **Total Cost of Fixing the Damage**: **\$2,300,000**