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Calculating the years to maturity and coupon rate

Backwater Corp. has 6 percent coupon bonds making annual payments with a YTM of 5.5 percent. The current yield on these bonds is 5.85 percent. How many years do these bonds have left until they mature?

Page Enterprises has bonds on the market making annual payments, with nine years to maturity, and selling for $954. At this price, the bonds yield 6.20 percent. What must the coupon rate be on the bonds?

Solution Summary

There are two problems. Solution to first problem depicts the steps to calculate the maturity period. Solution to second problem calculates the coupon rate in the given case. Calculations are carried out with the help of suitable built-in functions in MS Excel.

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