Question
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.1%
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of
$1,000,
and a coupon rate of
7.1%
(annual payments). The yield to maturity on this bond when it was issued was
5.8%.
What was the price of this bond when it was issued?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
