What must be the term of maturity on these bonds

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Reference no: EM132008306

1. DMA Corp. has bonds on the market

the annual YTM is 7.60%

there is a par value of $1,000

the bonds will carry a current market price of $875

the coupon interest rate is 5.40%

What must be the term of maturity on these bonds?

2. You are interested in investing in what is called a zero-coupon bond

this particular zero has a par value of $1,000

it carries a maturity of 8

the current price of the zero bond is $655.07

what is the yield to maturity on this zero bond?

Reference no: EM132008306

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