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Suppose that Ally Financial Inc. issued a bond with 1 0 years until maturity, a face value of $ 1 , 0 0 0 ,
Suppose that Ally Financial Inc. issued a bond with years until maturity, a face value of $ and a coupon rate of annual payments The yield to maturity on this bond when it was issued was
a What was the price of this bond when it was issued?
b Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?
c Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?
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