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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 50. The timeline shows a cash flow of $ 20.38 each from Period 1 to Period 49. In Period 50, the cash flow is $ 20.38 plus $ 1,000.   Period.        Cash Flows  0 1                   $20.38 2                    $20.38   49.              $20.38 50.              $20.38 + 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?

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 50. The timeline shows a cash flow of $ 20.38 each from Period 1 to Period 49. In Period 50, the cash flow is $ 20.38 plus $ 1,000.   Period.        Cash Flows  0 1                   $20.38 2                    $20.38   49.              $20.38 50.              $20.38 + 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?

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 11PROB
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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 50. The timeline shows a cash flow of $ 20.38 each from Period 1 to Period 49. In Period 50, the cash flow is $ 20.38 plus $ 1,000.
 
Period.        Cash Flows 
0
1                   $20.38
2                    $20.38
 
49.              $20.38
50.              $20.38 + 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?
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