Question
1.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%
1.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 yeild to maturity on this bond when it was issues was 5.9%. Assume the yield to maturity remains constant, what is the price of the bon immediately after it makes the first coupon payment?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
