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 7%, while Ford has a coupon rate of 5.2%. The GM bond trades at 99.32 (percent of par). What is the yield to maturity (YTM)? Correct The general bond pricing equation is: Bond price =iPMT[1(1+i)N1]+(1+i)NFV Remember that prices are quoted as a percentage of par value. For this particular GM bond: 993.15=i35[1(1+i)81]+(1+i)81,000 We can use trial and error, a financial calculator or Excel (using the RATE() or YIELD() functions) to find i : Using a financial calculator: Using Excel (don't enter the thousands separators): = RATE(nper, pmt, pv, fv) = RATE (8,35,993.15,1,000) =0.036 Since YTM is always quoted as an APR with semiannual compounding, we need to double the period rate: YTM=20.036=0.072 Using Excel (don't enter the thousands separators): = RATE(nper, pmt, pv, fv) = RATE (8,35,993.15,1,000) =0.036 Since YTM is always quoted as an APR with semiannual compounding. we need to double the period rate: YTM=20.036=0.072 What should be the price of the Ford bond (in $ )