Question
A. Suppose a five-year, $1,000 bond with annual coupons has a price of $895.35 and a yield to maturity of 5.7%. What is the bond's
A. Suppose a five-year, $1,000 bond with annual coupons has a price of $895.35 and a yield to maturity of 5.7%. What is the bond's coupon rate? The bond's coupon rate is enter your response here%.
(Round to three decimal places.)
B.
uppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of$1,000, and a coupon rate of 7.5% (annual payments). The yield to maturity on this bond when it was issued was 6.4%. What was the price of this bond when it was issued? When it was issued, the price of the bond was?
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