3 of 11 This Question: 1 pt Assume that a bond will make payments every six mont

Question

3 of 11 This Question: 1 pt Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 39 40 Period $19.64 $19.64 $19.64 $19.64+$1,000 Cash Flows a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)7 c. What is the face value? a. What is the maturity of the bond (in years)? Dears. (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 S. (Round to the nearest dollar.)

Explanation / Answer

Maturity of the bond = 40 periods / 2 = 20 years

Coupon rate = 19.64 / 1000 * 100 = 1.964 % * 2 = 3.93 %

Face value = $1,000

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