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8.) A 5 year $10,000 bond with a 10% coupon rate costs $10,000 and pays its holder $500 every 6 months for 5 years, with
8.) A 5 year $10,000 bond with a 10% coupon rate costs $10,000 and pays its holder $500 every 6 months for 5 years, with a final additional payment of $10,000 made at the end of those 10 payments. Find its present value if the interest rate is: (a) 6%, (b) 10% (c) 12%. Assume the compouding is monthly.
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