1. How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10% coupon bond if nominal rd = 15.9%.

2. Suppose for $1,000 you could buy a 12.9%, 10-year, annual payment bond or a 12.9%, 10- year, semiannual payment bond. They are equally risky. Which would you prefer? If $1,000 is the proper price for the semiannual bond, what is the equilibrium price for the annual payment bond?

Please show formulas and answers in Excel. It is very important to me because I have to use it by Excel. Thank you.