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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
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 6.4%, while Ford has a coupon rate of 5.5%. Part 1 Attempt 1/10 for 10 pts. The GM bond trades at 93.32 (percent of par). What is the yield to maturity (YTM)? Part 2 Attempt 1/ What should be the price of the Ford bond (in $)?
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Part 1 To calculate the yield to maturity YTM for the GM bond trading at 9332 of par value we will u...
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
