Question: How does the equation for valuing a bond change if semiannual payments are made?Find the value of a 10-year, semiannual payment, 10 percent coupon bond

How does the equation for valuing a bond change if semiannual payments are made?Find the value of a 10-year, semiannual payment, 10 percent coupon bond if the nominal r_d= 13%.

h. Suppose a 10-year, 10 percent, semiannual coupon bond with a par value of $1,000 is currently selling for $1,135.90, producing a nominal yield to maturity of 8 percent.However, the bond can be called after 5 years for a price of $1,050.

(1) What is the bond's nominalyield to call (YTC)?

(2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC?Why?

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