A bond issued by a corporation on October 1, 2007, is scheduled to mature on October 1, 3007. If today is October 2, 2009, what is this bond's time to maturity? (Assume annual interest payments.)
A) 2 years
B) 50 years
C) 998 years
D) 100 years

Question

Quizplus · Accepted Answer

The time to maturity is the difference between the maturity date (October 1, 3007) and the current date (October 2, 2009), which is 998 years.

A Bond Issued by a Corporation on October 1, 2007