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Please reapond to both. explain too. You are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The bond has

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Please reapond to both. explain too.

You are considering the purchase of a 20-year bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000. You require a 12% nominal yield to maturity on this investment. a) If the bond makes annual interest payments, what is the maximum price you should be willing to pay for the bond? b) If the bond makes semiannual interest payments, what is the maximum price you should be willing to pay for the bond

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