Question
Assume that a bond will make payments every six months as shown on the following timeline: The timeline starts at Period 0 and ends at
Assume that a bond will make payments every six months as shown on the following timeline:
The timeline starts at Period 0 and ends at Period 14. It shows cash flows of $15.00 in each period from Period 1 to Period 13. In Period 14, the cash flow is $1,015.00.
Period
0
1
2
13
14
Cash flow
$15.00
$15.00
$15.00
$1,015.00
a. What is the maturity of the bond (in years)?
b. What is the coupon rate (in percent)?
c. What is the face value?
Question content area bottom
Part 1
a. What is the maturity of the bond (in years)?
The maturity of the bond in years is
enter your response here
years.(Round to the nearest integer.)
Part 2
b. What is the coupon rate (in percent)?
The coupon rate is
enter your response here%.
(Round to two decimal places.)
Part 3
c. What is the face value?
The face value is
$enter your response here.
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