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 5.2%.
Part 1 The GM bond trades at 97.62 (percent of par). What is the yield to maturity (YTM)?
Part2 What should be the price of the Ford bond (in $)?
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
