What is the time to maturity of bond

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Reference no: EM131576757

Both Bond A and Bond B have face values of pound 1,000 and make coupon payments twice a year. Bond A has an annual coupon rate of 14%, a time to maturity of 7 years and a yield to maturity of 16% (APR). Bond B has an annual coupon rate of 10% and a yield to maturity of 8% (APR). Bond A and B have the same present value. What is the time to maturity of Bond B?

Reference no: EM131576757

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