2 Assume that a bond will make payments every six months as shown on the following...

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Finance

2 Assume that a bond will make payments every six months asshown on the following timeline? (using six-month? periods):

The timeline starts at Period 0 and ends at Period 50. Thetimeline shows a cash flow of $ 19.31 each from Period 1 to Period49. In Period 50, the cash flow is $ 19.31 plus $ 1,000.

Period012nothing4950

Cash Flows nothing$ 19.31$ 19.31nothing$ 19.31$ 19.31 plus $1,000

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

b. What is the coupon rate?(as a?percentage)?

c. What is the face?value?

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

The maturity is

Nothing years.???(Round to the nearest?integer.)

b. What is the coupon rate?(as a?percentage)?

The coupon rate is

Nothing?%. ?(Round to two decimal?places.)

c. What is the face?value?

The face value is $

Nothing. ?(Round to the nearest?dollar.)

Answer & Explanation Solved by verified expert
4.2 Ratings (828 Votes)
Solution a Maturity of the Bond It is given that there will be total of 50 periodical Coupon Payments using six months period So there will be 2 payments in a year that    See Answer
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2 Assume that a bond will make payments every six months asshown on the following timeline? (using six-month? periods):The timeline starts at Period 0 and ends at Period 50. Thetimeline shows a cash flow of $ 19.31 each from Period 1 to Period49. In Period 50, the cash flow is $ 19.31 plus $ 1,000.Period012nothing4950Cash Flows nothing$ 19.31$ 19.31nothing$ 19.31$ 19.31 plus $1,000a. What is the maturity of the bond?(in years)?b. What is the coupon rate?(as a?percentage)?c. What is the face?value?a. What is the maturity of the bond?(in years)?The maturity isNothing years.???(Round to the nearest?integer.)b. What is the coupon rate?(as a?percentage)?The coupon rate isNothing?%. ?(Round to two decimal?places.)c. What is the face?value?The face value is $Nothing. ?(Round to the nearest?dollar.)

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