How is a physical address generated in 8086?

Question

In the 8086 architecture, the memory space is 1 MiB in size and divided into logical segments of up to 64 KiB each.

i.e. it has 20 address

Answer 1

Address translation is done internally by a special unit without using the registers available to user code to store intermediate results - it just fetches 16-bit values and does the translation inside - it is not reflected anywhere where the user code could observe it.