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A) General Motors currently has outstanding bonds that were originally issued in 2018, with original maturity of 30 years. The bonds have an annual coupon
A) General Motors currently has outstanding bonds that were originally issued in 2018, with original maturity of 30 years. The bonds have an annual coupon rate of 5.4%, paid semiannually, and a $1,000 par value. If the bonds' yield in a recent 2022 trade was 6.44%, what was the bonds' price?
B) Firm But Comfy Mattresses has a beta of 1.25. If the risk-free rate is 1%, and the market risk premium is 10%, what is the company's required rate of return?
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