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5. Suppose the General Motors Corporation issued a bond with 10 years until maturity, a face value of $1000, and a coupon rate of 7%

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