General Electric just released $$10$ million worth of $$10,000$ ten$-$year bonds. Each bond pays

dividends semiannually at a rate of $6\%$ per year.

$($a$)$ Determine the amount a purchaser will receive each $6$ months and after $10$ years.

$($b$)$ Suppose a bond is purchased at a time when it is discounted by $2\%$ to $$9800.$ What are

the dividend amounts and the final payment amount at the maturity date?

Allied Materials needs $$3$ million in debt capital for expanded composites manufacturing. It

is offering small$-$denomination bonds at a discount price of $$800$ for a $4\%$$$1000$ bond that

matures in $20$ years with a dividend payable semiannually.

What nominal and effective interest rates per year, compounded semiannually, will Allied

Materials pay an investor?