The zero coupon bonds of JK industries has a market price of $318.46, a face value of $1,000 and a year to maturity of 6.69 percent. How many years is it until these bonds mature? Please show how I can solve this in Excel, thank you.
The zero coupon bonds of JK industries has a market price of $318.46, a face value of $1,000 and a year to maturity of 6.69 percent. How many years is it until these bonds mature? Please show how I can solve this in Excel, thank you.
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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The zero coupon bonds of JK industries has a market price of $318.46, a face value of $1,000 and a year to maturity of 6.69 percent. How many years is it until these bonds mature?
Please show how I can solve this in Excel, thank you.
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I have one question, I was instructed that the answer is 17.39 years and while it's a very small difference from 17.69 years, could you please help me understand why it's a litltle bit different the answer?
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