Question: Compute the present value for each of the following bonds: a. Priced at the end of its fifth year, a 10-year bond with a face

Compute the present value for each of the following bonds:
a. Priced at the end of its fifth year, a 10-year bond with a face value of $100 and a contract (coupon) rate of 10% per annum (payable at the end of each year) with an effective (required) interest rate of 14% per annum.
b. Priced at the beginning of its 10th year, a 14-year bond with a face value of $1,000 and a contract (coupon) rate of 8% per annum (payable at the end of each year) with an effective (required) interest rate of 6% per annum.
c. What is the answer to b if bond interest is payable in equal semiannual amounts?

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