Assuming the yield to maturity remains constant, what is the price of the bond immediately before it

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Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1000, and a coupon rate of 7% (annual payments). The yield to maturity on this bond when it was issued was 6%.

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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Question Posted: Jun 11, 2024 01:04 AM

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Assuming the yield to maturity remains constant, what is the price of the bond immediately before it

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Corporate Finance

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