Question

A pure discount (or zero-coupon) government bond has a face value of $25,000 and a yield of 3.501%. If the current price of the bond is $20,300, what is the maturity of the bond in years? Recall that the compounding interval for bonds is 6 months.

Answer 1

Number of period	=nper(rate,pmt,pv,fv)*1/2
		= 6.00 Years
Where,
rate	=	Discount rate	=	3.501%/2	=	0.017505
pmt	=	Coupon Payment		=	0
pv	=	Current Price		=	$       -20,300
fv	=	Face Value		=	$         25,000