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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%
| 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%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment? | |||||
| Maturity (years) | 10 | ||||
| Face value | $ 1,000 | ||||
| Coupon rate | 7% | ||||
| Yield to maturity | 6% | ||||
| Coupon | |||||
| Remaining Maturity (years) | |||||
| Bond price | |||||
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Governance Of Financial Management
Authors: John Carver, Miriam Carver
1st Edition
0470392541, 9780470392546
