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An n-year bond with annual coupons has the following characteristics: i) The redemption value at maturity is 1890; ii) The annual effective yield rate is
An n-year bond with annual coupons has the following characteristics: i) The redemption value at maturity is 1890; ii) The annual effective yield rate is 6%; iii) The book value immediately after the third coupon is 1254.87; and iv) The book value immediately after the fourth coupon is 1277.38. Calculate n.
A. 21
B. 18
C. 20
D. 19
This is the multiple choice I was given, but this was all the information given to me.
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