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General Motors issues bonds on November 1, 2019 with face value of $10,000 and a coupon rate of 8% and maturity date of November 1,
General Motors issues bonds on November 1, 2019 with face value of $10,000 and a coupon rate of 8% and maturity date of November 1, 2029. They are sold for $10,000.
a.) How much does this bond pay to the bondholder on November 1, 2020?
b.) On November 1, 2021? c.) On November 1, 2029? d. If these bonds sell for $8,000 on November 2, 2020, what is the interest rate on this bond? e.) If on that same date, similar bonds carry an interest rate of 5%, what should be the price of the bond?
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