Question
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.8
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.8 % (annual payments). The yield to maturity on this bond when it was issued was 6.1 % Assuming the yield to maturity remains constant, what is the price of the bond immediately "BEFORE" it makes its first coupon payment?
"BEFORE" the first coupon payment, the price of the bond is?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
