A zero coupon bond has a yield to maturity of 7.48 percent,semiannual compounding,a $1,000 face value,and a market price of $386.48.How many years is it until this bond matures?

Name: A zero coupon bond has a yield to maturity of 7.48 percent,semiannual compounding,a $1,000 face value,and a market price of $386.48.How many years is it until this bond matures?
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Question

Quizplus · Accepted Answer

$1,000 = $386.48 [1 + (.0748/2)^T]T = 25.89 semiannual periods Number of years = 25.89/2 = 12.95 years

A Zero Coupon Bond Has a Yield to Maturity of 7.48