Calculate the remaining term on the following corporate bond, which carries a risk premium of 100 bp over a GofC: Quote = $79.513, Coupon = 5.85%, YTM on GofC bond = 8%. a) 2 years b) 5 years c) 10 years d) 20 years e) 25 years
I forgot to mention that everything is in annual terms. Thanks!
nvmd got the answer!
What was the answer and how did you figure it out?
10 years? I did PV=-79.513 FV=100 PMT=5.85 I/Y=9 CPT N N=10.21