Question
use 20 years or 1 year when the maturity is 25 years but the financial data is for 2001? which leaves me with 20 years?
use 20 years or 1 year when the maturity is 25 years but the financial data is for 2001? which leaves me with 20 years?
| Current yield on Debt |
| coupon (semi-annual) | 6.74% |
| Issued | 7/14/96 |
| Maturity | 7/14/21 |
| Current price | £95.50 |
| Current Yield on UK Treasury |
| 3 months | 3.58% |
| 6 months | 3.58% |
| 1 year | 3.58% |
| 5 year | 4.87% |
| 10 year | 5.38% |
| 20 year | 5.73% |
Step by Step Solution
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SOLUTION Given the information provided we can calculate the remaining time to maturity of the bond to be 20 years This is because the bond was issued on July 14 1996 and had a maturity of 25 years wh...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
