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% (annual payments). The yield to maturity on this bond when it was issued was 6%. What was the price of this bond when it was issued? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section.
	Maturity (years)	10
	Face value	$ 1,000
	Coupon rate	7%
	Yield to maturity	6%
	Coupon
	Bond price
1	In cell D11, by using cell references, calculate the coupon payment of the bond.
2	In cell D12, by using cell references, calculate the price of the bond when it was issued. Note: The output of the expression or function you typed in this cell is expected as a positive number.