Nellie purchased $1,000,000 of bonds issued by a foreign country ten years ago

Nellie purchased $1,000,000 of bonds issued by a foreign country ten years ago. The coupon on the bond was 7.5% paid semi-annually. The foreign country has made all bond payments for 10 years. The country now has dire financial problems and a hedge fund has offered to buy back the bonds for 50% of the face value. Ignore any fees and taxes concerning the bonds.aWhat effective annual rate would Nellie have earned if the Bonds sold for their face value today at the end of ten years (assume that the last coupon was received)?bWhat effective annual rate would Nellie have earned if 50% of the bond’s face value was paid to Nellie today at the end of ten years (assume that the last coupon was received)?