How does the equation for valuing a bond change

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Problem 1: How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 1 0-year, semiannual payment, 10 percent coupon bond if nominal rd = 13%.

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

i) What is the bond's nominal yield to call?

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

Reference no: EM132627981

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