Question
A GM and a Ford bond have 4 years to maturity, a $1,000 par value, a BB rating, and pay interest semiannually. GM has a
A GM and a Ford bond have 4 years to maturity, a $1,000 par value, a BB rating, and pay interest semiannually. GM has a coupon rate of 6.7%, while Ford has a coupon rate of 5.7%. The GM bond trades at 92.41 (percent of par).
What should be the price of the Ford bond (in $)?
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The Infographic Guide To Personal Finance
Authors: Michele Cagan CPA, Elisabeth Lariviere
1st Edition
1507204663, 978-1507204665
