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16 September, 16:53

Global Communications has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has a par value of $1,000 and a yield to maturity of 6.72 percent. How many years is it until this bond matures?

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  1. 16 September, 17:15
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    Years to Maturity = 12.53

    Explanation:

    Coupon Rate = 7.00%

    Coupon Periods = 2

    Perpetuity Value = 1,041.67

    Price = 1,023.46

    Discounted Perpetuity Value = 455.17

    Yield to Maturity = 6.72%

    Annuity Value = 586.49

    Discounted Face Value = 436.97

    Semiannual Coupon = 35.00

    Price 1,023.46

    Periods to Maturity = 25.05

    Semiannual Yield = 3.36%

    Years to Maturity = 12.53
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