7)8)9)PLEASE ANSWER ALL OF THE QUESTIONS

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.4% (annual payments). The yield to maturity on this bond when it was issued was 6.1%. What was the price of this bond when it was issued? Your company currently has $1,000 par, 6.75% coupon bonds with 10 years to maturity and a price of $1,087. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. The following table summarizes the yields to maturity on several one-year, zero-coupon securities: a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating? b. What is the credit spread on AAA-rated corporate bonds? c. What is the credit spread on B-rated corporate bonds? d. How does the credit spread change with the bond rating? Why