Question
GMC recently issued bonds with a face value of $1,000, a coupon rate of 11% and a term of 20 years. The yield from bonds
GMC recently issued bonds with a face value of $1,000, a coupon rate of 11% and a term of 20 years. The yield from bonds of similar quality is currently is 11%. What is this bond selling for today? DO NOT solve this problem using any calculations. What is the price? EXPLAIN!
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
