If a bond currently sold at $865 with a yield to maturity of 8% and a...

Question

Question

If a bond currently sold at $865 with a yield to maturity of 8% and a coupon rate of 12%, paid semi-annually, in how many years does the bond mature?

Answer 1

Answer #1

Solution:

Current price ( PV) =$865

Yield to maturity ( rate) = 8%

Coupon rate =12%

Face value ( FV) = $1000

Interest (PMT) =12%

Years to maturity ( nper) =?

Nper ( rate, PMT , PV, FV)

Nper ( 8%, 120, -865, 1000)

Nper = -3.10 years

Answer 2

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