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GM previously issued bonds that mature 21 years from now, and pay 6.87% coupon interest. Each bond has $1000 face value, and half the annual

GM previously issued bonds that mature 21 years from now, and pay 6.87% coupon interest. Each bond has $1000 face value, and half the annual coupon is paid each six months. The yield to maturity on these bonds is 4.77%. Explain why these bonds sell at a price that differs from their $1000 face value

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