f. What is price risk? Which has more price risk, an annual payment 1-year bond or a 10-year bond? Why?

g. What is reinvestment risk? Which has more reinvestment risk, a 1-year bond or a 10-year bond? h. 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 = 13%.

i. Suppose for $1,000 you could buy a 10%, 10-year, annual payment bond or a 10%, 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?