A bond issued by a corporation on May 1, 1999, is scheduled to mature on May 1, 2019. If today is May 2, 2009, what is this bond's time to maturity? (Assume annual interest payments.)
A) 9 years
B) 10 years
C) 19 years
D) 20 years

Question

Quizplus · Accepted Answer

The bond was issued on May 1, 1999, and is set to mature on May 1, 2019. Since today is May 2, 2009, the bond has 10 years left until its maturity date.

A Bond Issued by a Corporation on May 1, 1999