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GM Financing Inc. is planning to offer a $ 1 0 0 0 par value 9 - year maturity bond with a coupon interest rate

GM Financing Inc. is planning to offer a $1000 par value 9-year maturity bond with a coupon interest rate that changes every 3 years. The coupon rate for the first three years is 10 percent, 10.75 percent for the next 3 years, and 11.5 percent for the final 3 years. If you require an 11 percent rate of return on a bond of this quality and maturity, what is the maximum price you would pay for the bond? (Assume interest is paid annually at the end of each year.)
a. $875.34
b. $977.63
c. $621.38
d. $787.49
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