An 8 percent semiannual coupon bond is priced at $1,204.60. The bond has a $1,000 face value and a yield to maturity of 4.88 percent. How many years will it be until this bond matures?

A. 8.00 years

b. 8.65 years

c. 15.91 years

d. 16.00 years

e. 17.29 years

Answer: The correct answer is 8.00 years.

Enter 4.88/2 -1,204.60 80/2 1,000

N I/Y PV PMT FV

Solve for 16

Number of years = 16 / 2 = 8

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