Assume that a bond will make payments every six months as shown on the following...
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Finance
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods):
The timeline starts at Period 0 and ends at Period 20. The timeline shows a cash flow of $ 20.04 each from Period 1 to Period 19. In Period 20, the cash flow is $ 20.04 plus $ 1,000.
PeriodPeriod
00
11
22
nothing
1919
2020
Cash FlowsCash Flows
nothing
$ 20.04$20.04
$ 20.04$20.04
nothing
$ 20.04$20.04
$ 20.04 plus $ 1,000$20.04+$1,000
a. What is the maturity of the bond (in years)?
b. What is the coupon rate (as a percentage)?
c. What is the face value?
a. What is the maturity of the bond (in years)?
The maturity is
nothing
years.(Round to the nearest integer.)
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