Question
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1000 ,and a coupon rate of
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1000 ,and a coupon rate of 7.7 %(annual payments). The yield to maturity on this bond when it was issued was 5.6 % .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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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
9781133169949, 538751347, 978-0538751346
