A company has 8 percent coupon bonds making semiannual payments with a YTM of 7 percent. These bonds currently sell for XXXXXXXXXXpercent of par value. How many years do these bonds have left until...

A company has 8 percent coupon bonds making semiannual payments with

a YTM of 7 percent. These bonds currently sell for 104.83 percent of par

value. How many years do these bonds have left until they mature?

Coupon rate = 7.8%

Par Value = 1000

Market Value = 108%* 1000 = 108

Number of Periods(n) = 2*(12-2) = 20

Coupon = Coupon rate * Par value /2 = 7.8% * 1000/2 = 39

YTM using rate function of Excel = 2 * RATE(20,39,-1080,-1000) = 6.68%