Question

Bond maturity

The Lo Sun Corporation offers a 7 percent bond with a current market price of $873.35. The yield to maturity is 8.34 percent. The face value is $1,000. Interest ispaid semiannually. How many years is it until this bond matures?


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Answer #1
A bond's maturity refers to the specific future date on which the investor's principal will be repaid

873.35(1+ .07/2)^n = 1000 (1+ .0834)

solve for n
n/2 is the no. of years (semi annually)

PLEASE RATE
answered by: sowmya
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