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Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 1 39 40 Cash Flows $19.89 $19.89 $19.89 $19.89 +$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? a. What is the maturity of the bond (in years)?

Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 1 39 40 Cash Flows $19.89 $19.89 $19.89 $19.89 +$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? a. What is the maturity of the bond (in years)?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods):
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 1 39 40 Cash Flows $19.89 $19.89 $19.89 $19.89 +$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? make a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) b. What is the coupon rate (as a percentage)? The coupon rate is %. (Round to two decimal places.) c. What is the face value? The face value is $. (Round to the nearest dollar.)
Transcribed Image Text:Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 1 39 40 Cash Flows $19.89 $19.89 $19.89 $19.89 +$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? make a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) b. What is the coupon rate (as a percentage)? The coupon rate is %. (Round to two decimal places.) c. What is the face value? The face value is $. (Round to the nearest dollar.)
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