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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 6.5%, while Ford has a coupon rate of 5.5%. Attempt 1/5 for 10 pts.

Part 1 The GM bond trades at 92.38 (percent of par). What is the yield to maturity (YTM)?

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