Question: A 10-year Emmaco Corporate bond has a par value of $10,000 with coupons at 7.8% paid semiannually. (a) If this bond is bought to yield

A 10-year Emmaco Corporate bond has a par value of $10,000 with coupons at 7.8% paid semiannually.

(a) If this bond is bought to yield 10% compounded semiannually, find its price.

(b) Suppose that after this bond has been held for 2 years, the desired yield is 8% compounded semiannually. Find the selling price.

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