Question

Assume that a bond will make payments every six months as shown on theollowing timeline (using six-month periods) Period 39 40 Cash Flows $19.16 $19.16 S19.16 $19.16+$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?

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Answer #1
a Maturity of the bond 20 =40/2
b Coupon rate 3.83% =19.16*2/1000
c Face value $ 1,000
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