Question
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of $1000, and a coupon rate of 7.8% (annual
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of $1000, and a coupon rate of 7.8% (annual payments). The yield to maturity on this bond when it was issued was 6.4%. Assuming the yeild to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
