Question
A GM and a Ford bond both have 4 years to maturity, a $1,000 par value, a BB rating and pay interest semiannually. GM has
A GM and a Ford bond both have 4 years to maturity, a $1,000 par value, a BB rating and pay interest semiannually. GM has a coupon rate of 6.9%, while Ford has a coupon rate of 5.7%. Attempt 1/5 for 10 pts.
Part 1 The GM bond trades at 98.3 (percent of par). What is the yield to maturity (YTM)? 0.03699 Try again
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Financial Markets And Institutions
Authors: Frederic S. Mishkin
2nd Edition
0321014650, 9780321014658
