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 7.6%
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1000, and a coupon rate of 7.6% (annual payments). The yield to maturity on this bond when it was issued was 5.9%.Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?
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Exchange Rates and International Finance
Authors: Laurence Copeland
6th edition
273786040, 978-0273786047
