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% (annual
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 6.3%. 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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Principles Of Investments
Authors: Alan Marcus, Zvi Bodie, Michael Drew, Anup Basu, Alex Kane
1st Edition
0071012389, 978-0071012386
