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 7.5%
Suppose that General Motors Acceptance Corporation issued a bond with 10 years untilmaturity, a face value of $1,000, and a coupon rate of 7.5% (annual payments). The yield to maturity on this bond when it was issued was 5.6%. What was the price of this bond when it wasissued?
When it wasissued, the price of the bond was $__. (Round to the nearestcent.)
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
11th Edition
1260288390, 978-1260288391
