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Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods):
The timeline starts at Period 0 and ends at Period 30. The timeline shows a cash flow of $ 20.09 each from Period 1 to Period 29. In Period 30, the cash flow is $ 20.09 plus $ 1,000.
Period
0 1 2 29 30
Cash FlowsCash Flows
nothing
$ 20.09 $20.09
$ 20.09 . $20.09
nothing
$ 20.09$20.09
$ 20.09 plus $ 1,000$20.09+$1,000
a. What is the maturity of the bond (in years)?
b. What is the coupon rate (as a percentage)?
c. What is the face value?
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