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Redesigned Computers has 10 percent coupon bonds outstanding with a current market price of $898.06. The...

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Finance

Redesigned Computers has 10 percent coupon bonds outstandingwith a current market price of $898.06. The yield to maturity is11.34 percent and the face value is $1,000. Interest is paidsemiannually. How many years is it until this bond matures?rs at a4.50 percent interest compounded monthly. What is the amount ofeach payment?

Answer & Explanation Solved by verified expert
3.9 Ratings (592 Votes)
Bond price is equal towhere 50 is coupon payment semiannualt time to maturityNow we have bond price with us ie 89806So we have to calculate the value for tSolving for t we get answer as 36 Now divide this 36 by 2 sothat we we will get number of years ie 18 We divided t36 by    See Answer
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