Ask Question
7 October, 23:12

Redesigned Computers has 6.2 percent coupon bonds outstanding with a current market price of $604. The yield to maturity is 14.4 percent and the face value is $1,000. Interest is paid annually. How many years is it until these bonds mature

+5
Answers (1)
  1. 7 October, 23:25
    0
    These bonds mature in 8 years

    Explanation:

    We are required to find the Number of Years that the Bonds will mature. Thus we want to find N

    Using A financial Calculator

    PV = $604

    YTM = 14.4 %

    PMT = $1,000 * 6.2 % = 62

    FV = $ 1000

    P/YR = 1

    N = ?

    N = 8.837

    Therefore these bonds mature in 8 years
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Redesigned Computers has 6.2 percent coupon bonds outstanding with a current market price of $604. The yield to maturity is 14.4 percent ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers