please solve it with formulas. this whole question 2 and all parts

2. Ms. Alumm is the portfolio manager for a large insurance company. She is considering investing $1 million to purchase some bonds of Patriot Enterprises, Inc. All of Patriot's bonds have marke: prices that imply a yield to maturity of 8% "bond equivalent yield (that is 4% every 6-month period). 1 Each Patriot bond is described here, based on a $1,000 face value (par value), which is the promised payment at maturity. - Bond A matures in five years and pays a 9% coupon yield ( $45 every 6 months on a $1,000 face value bond). - Bond B inatures in ten years, pays an 8% coupon yield ( $40 seminannual payments), and is being offered at par. 1 Ment domestic US bonds pay interest of half the coupon rate semiannually. The "bond-equivalent" yield to maturity is generally stated in terms of twice the semiannual yield, ignoring the compounding of the midyear coupon payovent. Thus the yield-to-maturity as commonly stated for semiannual bonds actually understates the true annual effuctive yield. This nase was prepared as the hasis for class discussion nuther than to illustnate cither effectioe or ineffectire himdling of an admivistrative situation. Problems 2 and 4 appear in the case, "Vahation and Discounted Cosh Flow"(HBS case no, 291 028) by Professor Michad E. Edlleson and were revised for inclusion in this ase. Problem 3 appears in the case, "intriduction to Intestment Eculantion Techniques" (HBS case no. 285-115) by Professor Daight B. Cnane and was also revised for inclusion in this case. Copyright $1997 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685 or write Harvard Business School Publishing, Boston, MA 02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means-electronic, mechanical, photocopying, recording, or otherwise-without the permission of Harvard Business School. or 617.783.7860 - Bond C is a zero-coupon bond that pays no explicit interest, but will pay the face amount of $1,000 per bond at maturity in ten years. A. At what price should each bond currently sell? As an altemative, Ms. Alumm has been invited to invest $1 million in a 10-year Eurobond of a second firm, Nationaliste, S.A2 Nationaliste bonds are similar in risk to "Bond B " above: they promise an 8% coupon yield for 10 years, but coupons are paid annually, not semiannually. The Nationaliste bonds are priced at a 1% discount from par, or $990 per $1,000 face value. B. What yicld to maturity is implied by the Nationaliste Eurotond? Compare this yield to the 8% "bond-equivalent yield" of the Patriot semiannual conpon bond (Bond B) above. In which bond should Ms. Alumm intest