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Sure Tea Co. has issued 9% annual coupon bonds which are now selling at a yield to maturity of 10 percent and current yield of 9.8375%. What is the remaining maturity of these bonds?

Use the NPER function to calculate the number of years till maturity.

Face value of bond \$1,000
Annual coupon rate 9%
Current yield 9.8375%
Yield to maturity 10%

Current price per bond FORMULA
Years till maturity FORMULA.

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#### Solution Preview

(a) Current Price Per Bond

Current Yield = Annual Payment / Price Paid
=>0.098375 = 0.09*1000 / Price Paid
=> Price Paid = 90/0.098375
=> Price Paid = 914.87

Thus the current ...

#### Solution Summary

The solution uses Excel formulas to solve present value problems. Specifically, the problem is solving for the number of periods.

\$2.49