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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 7.9%
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 7.9% annual payments). The yield to maturity on this bond when it was issued was 6.2%. What was the price of this bond when it was issued? When it was issued, the price of the bond was $ (Round to the nearest cent.) Consider the following bonds: Bond Coupon Rate (annual payments) 0.0% B 0.0% 4.4% D 8.1% Maturity (years) 15 10 15 10 What is the percentage change in the price of each bond if its yield to maturity falls from 6.3% to 5.3%? The price of bond A at 6.3% YTM per $100 face value is $ (Round to the nearest cent.)
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