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how to solve part 1-2 Problem 4 Intro AGM and a Ford bond both have 4 years to maturity, a $1,000 par value, a BB

image text in transcribedhow to solve part 1-2

Problem 4 Intro AGM and a Ford bond both have 4 years to maturity, a $1,000 par value, a BB rating and pay interest semiannually. GM has a coupon rate of 6.3%, while Ford has a coupon rate of 5.7%. IB Attempt 1/10 for 10 pts. Part 1 The GM bond trades at 88.04 (percent of par). What is the yield to maturity (YTM)? 3+ decimals Submit IB Attempt 1/10 for 10 pts. Part 2 What should be the price of the Ford bond (in $)? 0+ decimals Submit

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