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?

Question

Quizplus · Accepted Answer

It's easiest to solve this problem using financial calculator. You can then use the calculator answer as the time period in the formula just to verify that your answer is correct. The number of six-month periods is 25.052. The number of years is 12.53 years.

Global Communications Has a 7 Percent,semiannual Coupon Bond Outstanding with a Current