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(a) How much should you be prepared to pay for a 10-year bond with a 6% coupon, semi-annual payments, and a semi-annually compounded yield of

(a) How much should you be prepared to pay for a 10-year bond with a 6% coupon, semi-annual payments, and a semi-annually compounded yield of 7.5%? (b) Why do companies issue bonds (not definition, rather as I insighted in class, description, that is, meaning; for partial credit, however, you still can, in your own words, discuss definition of a bond)?

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