Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.

Question

Question

Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.

S07-25 Finding the Bond Maturity (LO2)

Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.55 percent.

How many years do these bonds have left until they mature? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Maturity of bond = _______ years

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #1

Add a comment

Answer 2

Answer #2

Annual payments on a 1,000 bond are 8%, or 80. If the current yield is 7.55%, i.e. 80 / Current Price, then Current Price is 80 / .0755, or 1,059.60.

With PV 1,059.60, FV 1,000, PMT 80, YTM 7.2%, N must be 11.057 yrs.

Add a comment

Answer 3

Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.

Homework Answers

Add Answer to:
Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.

Post as a guest

Earn Coins

Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.

Homework Answers

Add Answer to: Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.

Post as a guest

Earn Coins

Add Answer to:
Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent.