General motors issued 10-year bonds in August of 2017. The bonds make semiannual payments occurring on April 1 and October 1 each year, with the first payment on April 1 2018, and the last on October 1, 2027. The coupon rate is 4.2%.

(a) Assuming a principal of 100, what would the cash flow be starting from September 30, 2017?

(b) The bond is currently selling for $93.03 (per 100 of face value). If you buy the bond today, what would its cash flow be? Is it the same as part a plus the addition of 6.97 (100 - 93.03)?