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12-09-2022
Business

Answered

Sure+tea+co.+has+issued+4.5%+annual+coupon+bonds+that+are+now+selling+at+a+yield+to+maturity+of+5.50%+and+current+yield+of+5.00%.+what+is+the+remaining+maturity+of+these+bonds?

Answer :

Tutorconsortium338 Tutorconsortium338

14-09-2022

According To The Question,

Coupon will equal to 45

As

YTM=5.50
PV = 45/0.05=900
=NPER(0.055,45,-900,1000)
=14.91 years or 15 years

A coupon bond is a specific kind of bond that has attached coupons and makes periodic interest payments (usually annually or semi-annually) during its life as well as its par value upon maturity. These bonds have a coupon rate, which is the bond's yield as of the bond's issuing date.

Simply multiply the bond's face value by its yearly coupon rate to determine the annual coupon payment for the bond.

To Learn more about Coupon Bonds, Click the links.

https://brainly.com/question/18803974

https://brainly.com/question/22504216

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