The zero coupon bonds of JK Industries have a market price of $211.16, a face value of $1,000, and a yield to maturity of 7.39 percent. How many years is it until these bonds mature

It will take about 22 years until the bonds mature.

Explanation:

This can calculated as follows:

BP = FV / (1 + r) ^n ... (1)

Where;

BP = Bond price = $211.16

FV = Face value of $1,000

r = Yield to maturity = 7.39%, or 0.0739

n = number of years for the bond to mature = ?

Substituting the values into equation (1) we have:

211.16 = 1,000 / (1 + 0.0739) ^n

211.16 [ (1.0739) ^n] = 1,000

(1.0739) ^n = 1,000/211.16

(1.0739) ^n = 4.73574540632696

Log-linearizing the above, we have:

nln (1.0739) = ln (4.73574540632696)

n = ln (4.73574540632696) / ln (1.0739)

= 1.55513913902672/0.0712968818820338

= 21.8121620185272

n = 22 years approximately

Therefore, it will take about 22 years until the bonds mature.