What is the maturity of the bond

Assignment Help Accounting Basics

Reference no: EM132655999

Question - Assume that a bond will make payments every six months as shown on the following timeline:

The timeline starts at Period 0 and ends at Period 22. It shows cash flows of $40.00 in each period from Period 1 to Period 21. In Period 22, the cash flow is $1,040.00.

Period 0 1 2 21 22

Cash flow $40.00 $40.00 $40.00 $1,040.00

a. What is the maturity of the bond (in years)?

b. What is the coupon rate (in percent)?

c. What is the face value?

Reference no: EM132655999

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