Cavo Corp. has 6.3 percent coupon bonds making annual payments with a YTM of 7.14 percent. The

Question:

Cavo Corp. has 6.3 percent coupon bonds making annual payments with a YTM of 7.14 percent. The current yield on these bonds is 6.95 percent. How many years do these bonds have left until they mature?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...