A 7 year, $518,822 Bond, was issued 3 years ago.

Coupons of $15,210 are paid semi annually.

Calculate the number of periods remaining ("n").

Question

A 7 year, $518,822 Bond, was issued 3 years ago.

Coupons of $15,210 are paid semi annually.

Calculate the number of periods remaining ("n").

BlackTom AI · Accepted Answer

First, identify the key facts: the bond has a stated term of 7 years, and it was issued 3 years ago. Since the total duration from issue to maturity is 7 years, the remaining time until maturity is 7 − 3 = 4 years. Because coupon payments are made semiannually, each year contains two coupon periods. Therefore, the total number of remaining coupon periods is 4 years × 2 periods per year = 8 periods. The given answer of 8 periods is consistent with these calculations.

Note: The bond’s price, coupon amount, and face value do not affect the calculation of the remaining periods unless the maturity date or payment schedule is altered; here the schedule is straightforward based on remaining years and semiannual payments.

BFIN011 Week 9 Online In-class Assessable Quiz - 45 minutes |LA003- Requires Respondus LockDown Browser

A 7 year, $518,822 Bond, was issued 3 years ago. Coupons of $15,210 are paid semi annually. Calculate the number of periods remaining ("n").

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