Question: A 20-year-maturity bond with par value of $1000 makes semiannual coupon payments at a coupon rate of 8 percent. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is
a)$950
b)$1000
c)$1050
Repeat the question using the same data, but assuming that the bond makes its coupon payments annually. Why are the yields lower in this case?