g. 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 the

nominal rd 5 13%.

m. What is interest rate (or price) risk? Which bond has more interest rate risk: an annual

payment 1-year bond or a 10-year bond? Why?

n. What is reinvestment rate risk? Which has more reinvestment rate risk: a 1-year

bond or a 10-year bond?