Question
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of $ 1000 , and a coupon rate of
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of $ 1000, and a coupon rate of 7.4 % (annual payments). The yield to maturity on this bond when it was issued was 5.9 %. Assuming the yield to maturity remainsconstant, what is the price of the bond immediately before it makes its first couponpayment?
PS - FAST HELP IS NEEDED! thank you!
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
