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 7.4% (annual payments). The yield to maturity on this bond when it was issued was 5.5%. 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.)
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 7.4% (annual payments). The yield to maturity on this bond when it was issued was 5.5%. 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.)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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$1,000, and a coupon rate of 7.4% (annual payments). The yield to maturity on this bond when it was issued was
5.5%. 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.)"
Transcribed Image Text: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 7.4% (annual payments). The yield to maturity on this bond when it was issued was
5.5%. 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.)

Transcribed Image Text:Suppose a five-year, $1,000 bond with annual coupons has a price of $896.11 and a yield to maturity of 5.6%. What
is the bond's coupon rate?
..
The bond's coupon rate is%. (Round to three decimal places.)
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