Question
10. (13 points) GM just issued a bond with 5.5% coupon rate, paid semi-annually. The bond has 7-year maturity and not callable. If the bond
10. (13 points) GM just issued a bond with 5.5% coupon rate, paid semi-annually. The bond has 7-year maturity and not callable. If the bond has YTM of 6.5%, what is the coupon yield and price of the bond? What is the duration? How much will the bond price change if YTM goes down to 6% (use duration approximation)?
Please do this in Excel and show Formulas.
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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
