Question
General Motor issued a 10-year bond with A rating. The bonds pay investors $30 coupon payment every half year. Investors require 4% risk premium on
General Motor issued a 10-year bond with A rating. The bonds pay investors $30 coupon payment every half year. Investors require 4% risk premium on the bond. Risk free rate is 3%. What are the coupon rate and yield to maturity of the bonds?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
