Question: (a) Consider a 10-year, 7% corporate bond with face value $10,000. Assume that the bond pays semi-annual coupons. Compute the fair value of the bond

(a) Consider a 10-year, 7% corporate bond with face value $10,000.

(a) Consider a 10-year, 7% corporate bond with face value $10,000. Assume that the bond pays semi-annual coupons. Compute the fair value of the bond today if the nominal yield-to-maturity is 15% compounded semi-annually

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