Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value of $ 1,000,and a coupon rate of 6%(annual payments).
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value of
$ 1,000,and a coupon rate of 6%(annual payments). The yield to maturity on this bond when it was issued was9%.
What was the price of the bond when it was issued?
Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?
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Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
