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1 . Suppose a 5 - year, $ 1 0 0 0 bond with annual coupons has a price of $ 9 0 1 .

1. Suppose a 5-year, $1000 bond with annual coupons has a price of $901.26 and a yield to maturity of 5.8%. What is the bond's coupon rate? 2. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1000, and a coupon rate of 7.3%(annual payments). The yield to maturity on this bond when it was issued was 6.3%. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?

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