ke payments every six months as shown on the following timeline (using six-month

Question

ke payments every six months as shown on the following timeline (using six-month periods): Pe 2 29 30 $19.48 $19.48 $19.48 $19.48+$1,000 a. What is the maturity of the bond (in years)? hat is the coupon rate (as a percentage)? What is the face value? a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer) b. What is the coupon rate (as a percentage)? The coupon rate is[]%. (Round to two decimal places.) c. What is the face value? The face value is $1000 (Round to the nearest dollar.)

Explanation / Answer

Since coupon payments are made semi annually,

The coupon rate on the bond=19.48/1000 ×2=3.89%.

Thank you.

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