Intro

A GM 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 $6\mathrm{.}7\%,$ while Ford

has a coupon rate of $5\mathrm{.}9\%.$

Part $1$

Attempt $\frac{2}{5}$ for $10$ pts$.$

The GM bond trades at $96\mathrm{.}28($percent of par$).$ What is the yield to maturity

$($YTM$)$

part $2$

What should be the rpoce of the ford bond in $$?$