Sure Tea Co. has issued 9% annual coupon bonds that are now selling at a yield to

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

I have currently calculated that Bond Price is $914.87(Assuming Face Value is $1,000)

Confused on how to compute the remaining maturity. A solution of this question says that 1 year remains but there was no explanation on how.

Related Book For answer-question

Investment

ISBN: 978-0073530703

9th edition

Authors: Zvi bodie, Alex kane, Alan j. marcus

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Posted Date: May 02, 2020 05:30 AM

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Sure Tea Co. has issued 9% annual coupon bonds that are now selling at a yield to

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Expert Answer:

Current yield 0098375 so bond price can be solved from the following 90price 0098375 ... View the full answer

Investment

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