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Problem:

You have the ability to buy a bond with a par value of $1000, coupon rate of 12%, paid semi-annually, nominal market rate of interest of 8.85%, for a price of $1170.02. The seller cannot remember how many years of maturity remain on the bond. You are able to inform the seller that ____ years remain to maturity.

A.11.5

B.15

C.9.5

D.10

E.7.5

Give details comprehensively and show all calculation.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147352

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