How many years is it until this bond matures

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1. The Lo Sun Corporation offers a 6.1 percent bond with a current market price of $781.50. The yield to maturity is 8.43 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?

37.86 years

9.47 years

18.93 years

25.62 years

36.33 years

2. The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 3.1 percent. The current rate of inflation is 1.9 percent. What is the nominal rate of return on these bonds?

1.01 percent

5.06 percent

1.05 percent

5.00 percent

1.20 percent

Reference no: EM131310881

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