Assume that a bond will make payments every six months as shown on the following timeline: The timeline starts at Period 0 and ends at Period 18. It shows cash flows of $25.00 in each period from Period 1 to Period 17. In Period 18, the cash flow is $1,0

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Assume that a bond will make payments every six months as shown on the following timeline: The timeline starts at Period 0 and ends at Period 18. It shows cash flows of $25.00 in each period from Period 1 to Period 17. In Period 18, the cash flow is $1,0

Assume that a bond will make payments every six months as shown on the following timeline:

The timeline starts at Period 0 and ends at Period 18. It shows cash flows of $25.00 in each period from Period 1 to Period 17. In Period 18, the cash flow is $1,025.00.

0 1 2---------------------------------17-------------18

$25.00 $25.00 $25.00 $1,025.00

a. What is the maturity of the bond (in years)?

b. What is the coupon rate (in percent)?

c. What is the face value?

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answered by: Andrew San Andres

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Assume that a bond will make payments every six months as shown on the following timeline: The timeline starts at Period 0 and ends at Period 18. It shows cash flows of $25.00 in each period from Period 1 to Period 17. In Period 18, the cash flow is $1,0

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Assume that a bond will make payments every six months as shown on the following timeline: The timeline starts at Period 0 and ends at Period 18. It shows cash flows of $25.00 in each period from Period 1 to Period 17. In Period 18, the cash flow is $1,0

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