An AED 1000, 14% bond with semi-annual coupons redeemable at par on April 11, 2016 is purchased on October 11, 2004 to yield 9% semi-annual interest.
How many coupons are left on this bond?
The answer i got is 25
coz i multiplied: 12.5 *2 = 25 << the number of coupons..
what would the right answer be?
2007-08-24 05:30:49 · 3 answers · asked by Yuuji 1 in Science & Mathematics ➔ Mathematics
hmmm but the right answer that i got was 23 coupons.. >< donno y..
2007-08-24 05:52:32 · update #1
If it is indeed a bearer bond (There arent many of them around). Its a 12 year bond (if 4-11-16 is the maturity date, not just the first call date). Semiannual interest means 2 coupons per year, so it should have 24 coupons attached. Five of them may have been clipped, so there may be as few as 19 remaining.
2007-08-24 05:46:21 · answer #1 · answered by davidosterberg1 6 · 0⤊ 0⤋
The bond will have its first coupon on Oct 11th 2004, 2nd on April 11 2005 and the 3rd on Oct 11 2005 for a total of 2 annual coupons from 2005 to 2015 (11 years) or 22, the last coupon is redeemed on April 11th 2016 for a total of 24 coupons.
Now, the question is how many remaining, from today's date AUG 24 2007, the 2005 and 2006 coupons have been redeemed along with the April 2007 one and the first one (a total of 6) leaving 18 coupons to be redeemed over the remiander of the bond's life.
2007-08-24 13:12:30 · answer #2 · answered by 037 G 6 · 0⤊ 0⤋
I get 24.
The first one is in Nov 2004
There are 2 a year from 2005-2015.
The last one is Apr 2016
2007-08-24 12:38:39 · answer #3 · answered by Barkley Hound 7 · 0⤊ 0⤋