Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000,
Posted: Mon Mar 21, 2022 4:33 pm
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
7.7%
(annual payments). The yield to maturity on this bond when it
was issued was
5.7%.
Assuming the yield to maturity remains constant, what is
the price of the bond immediately after it makes its first
coupon payment?
with 10 years until maturity, a face value of
$1,000,
and a coupon rate of
7.7%
(annual payments). The yield to maturity on this bond when it
was issued was
5.7%.
Assuming the yield to maturity remains constant, what is
the price of the bond immediately after it makes its first
coupon payment?