11. Bond Pricing. A General Motors bond carries a coupon rate of 8%, has 9 years until...

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11. Bond Pricing. A General Motors bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%.

a. What interest payments do bondholders receive each year? (LOI)

b. At what price does the bond sell? (Assume annual interest payments.) (LO2)

c. What will happen to the bond price if the yield to maturity falls to 6%? (LO2)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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Question Posted: Jul 31, 2024 10:00 AM

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11. Bond Pricing. A General Motors bond carries a coupon rate of 8%, has 9 years until...

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Fundamentals Of Corporate Finance

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