LKD Company has 11 percent coupon bonds with a YTM of 8.7 percent. The current yield on these bonds is 9.6 percent. How many years do these bonds have left until they mature? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

LKD Company has 11 percent coupon bonds with a YTM of 8.7 percent. The current yield on these bonds is 9.6 percent. How many years do these bonds have left until they mature? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 5P

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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

Question

LKD Company has 11 percent coupon bonds with a YTM of 8.7 percent. The current yield on these bonds is 9.6 percent. How many
years do these bonds have left until they mature?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Answer is complete but not entirely correct.
Years until maturity
9.62 x

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