Time to Maturity 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.)

Question

Quizplus · Accepted Answer

Today is October 2, 2009, which means the bond has already been outstanding for 2 years. The bond is not set to mature until October 1, 3007, which is 998 years away from the current date. Therefore, the time to maturity of the bond is 998 years.

Time to Maturity a Bond Issued by a Corporation on October