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An investor purchases a bond in 2010 for $1,152.47 and coupon payments are made semi-annually. The...

An investor purchases a bond in 2010 for $1,152.47 and coupon payments are made semi-annually. The par value is $1,000. The annual coupon rate is 10 percent and the annual yield-to-maturity on the bond is 8 percent. Assuming semi-annual compounding, what is the maturity (in years)?

Group of answer choices

a. 18 years

b. 15 years

c. 12 years

d. 10 years

Solutions

Expert Solution

Ans is c. 12 years

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 1 year ago
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