Question
Asked Nov 24, 2019
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  1. A company has 8 percent coupon bonds making semiannual payments with a YTM of 7 percent. These bonds currently sell for 104.83 percent of par value. How many years do these bonds have left until they mature?

Please use a HP 10bii+ Financial Calculator

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Expert Answer

Step 1

Hi, due to unavailability of HP10bii+ Financial calculator, we will answer this question using excel.

Step 2

Calculation of Years to Maturity:

The years to maturity are 23.99 years.

Excel Spreadsheet:

...
1 Face Value
$1,000
$1,048.30
2 Bond Value
3 Coupon Payment
4 Yield to Maturity
5 Years to Maturity
$40
3.50%
23.99
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1 Face Value $1,000 $1,048.30 2 Bond Value 3 Coupon Payment 4 Yield to Maturity 5 Years to Maturity $40 3.50% 23.99

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