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 7.5% (annual payments). The yield to maturity on this bond when it was issued was 5.8%.

Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?

(Round to the nearest cent.)

2) The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value):

Maturity (years)	1	2	3	4	5
Price (per $100 face value)	$95.86	$91.38	$86.70	$81.83	$76.60

a. Compute the yield to maturity for each bond.

b. Plot the zero-coupon yield curve (for the first five years).

c. Is the yield curve upward sloping, downward sloping, or flat?

a. Compute the yield to maturity for each bond.

The yield on the 1-year bond is?

(Round to two decimal places.)

The yield on the 2-year bond is?

(Round to two decimal places.)The yield on the 3-year bond is?

.

(Round to two decimal places.)The yield on the 4-year bond is?

(Round to two decimal places.)The yield on the 5-year bond is?

(Round to two decimal places.)

b. Plot the zero-coupon yield curve (for the first five years).