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    Bond Maturity, Coupon Rate and Face Value

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    2. Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods):
    0 1 2 3... 20
    $20 $20 $20 $20+$1000

    A. What is the maturity of the bond (in years)?
    B. What is the coupon rate (in percent)?
    C. What is the face value?

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    Solution Summary

    Assume that a bond will make payments every six months as shown on the following time-line (using six-month periods):
    0 1 2 3... 20
    $20 $20 $20 $20+$1000

    A. What is the maturity of the bond (in years)?
    B. What is the coupon rate (in percent)?
    C. What is the face value?

    $2.19

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