Question

Beam Inc. bonds are trading today for a price of

​$642.18

The bond pays annual coupons with a coupon rate of

2.5​%

and the next coupon is due in one year. The bond has a yield to maturity of

6.46​%.

How many years are there until the bond​ matures?  

The number of years until the bond matures is

__years.  ​(Round to the nearest whole​ number.)

Answer 1

Years to maturity is calculated using the NPER function as follows:

=NPER(rate,pmt,pv,fv)

=NPER(6.46%,2.5%*1000,-642.18,1000)

=14 years