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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 $ par value year maturity bond with a coupon interest rate that changes every years. The coupon rate for the first three years is percent, percent for the next years, and percent for the final years. If you require an 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 $
b $
c $
d $
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