Question 10 (a) What is the present value of a series of payments of $20,000 every three years in perpetuity with the rst payment made immediately, if the annual rate is 7% pa compounded semi~annually? (b) Polycorp bonds are selling for $103 (FV = 100) and mature in ve years. The coupon rate is 5%pa, with coupons paid quarterly. What is the effective annual yield on the bonds? Your supervisor would like you to conrm your answer using the excel Rate Function (Formula). (Answer (a) to the nearest dollar; (b) as a percentage to the nearest basis point)