Question
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of $1,000 , and a coupon rate of 7.2%
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of$1,000,and a coupon rate of7.2%(annual payments). The yield to maturity on this bond when it was issued was5.9%.What was the price of this bond when it wasissued? (round to the nearest cent.)
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
