Question
In: Finance
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face...
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 7.9 % (annual payments). The yield to maturity on this bond when it was issued was 6.2%. 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.)
Solutions
Expert Solution
M = $1000, n = 10, i = 6.2%, C
= 7.9% * $1000 = $79
P = $575.98 + $547.97
P = $1,123.94
jeff jeffy answered 2 years agoRelated Solutions
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face...
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 7.8% (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?
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face...
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
7.2%
(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 before it makes its first coupon
payment?
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face...
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
7.6%
(annual payments). The yield to maturity on this bond when it
was issued was
6.3%.
What was the price of this bond when it was issued?
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face...
Suppose that General Motors Acceptance Corporation issued a bond
with 10 years until maturity, a face value of $ 1000, and a
coupon rate of 7.7 % (annual payments). The yield to maturity on
this bond when it was issued was 5.9 %. 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...
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 7.5%
(annual payments). The yield to maturity on this bond when it
was issued was 6.5%. Assuming the yield to maturity remains
constant, what is the price of the bond immediately before it makes
its first coupon payment?
A. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a...
A. Suppose that General Motors Acceptance Corporation issued a
bond with 10 years until maturity, a face value of $1000, and a
coupon rate of 7.8% (annual payments). The yield to maturity on
this bond when it was issued was 6.2%. Assuming the yield to
maturity remains constant, what is the price of the bond
immediately after it makes its first coupon payment? After the
first coupon payment, the price of the bond will be $. (Round to
the nearest...
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value...
Suppose that Ally Financial Inc. issued a bond with 10 years
until maturity, a face value of $1000, and a coupon rate of 7%
(annual payments). The yield to maturity on this bond when it was
issued was 6%.
a. What was the price of this bond when it was issued?
b. Assuming the yield to maturity remains constant, what is the
price of the bond immediately before it makes its first coupon
payment?
c. Assuming the yield to maturity...
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value...
Suppose that Ally Financial Inc. issued a bond with 10 years
until maturity, a face value of $1000, and a coupon rate of 7%
(annual payments). The yield to maturity on this bond when it was
issued was 6%.
a. What was the price of this bond when it was issued?
b. Assuming the yield to maturity remains constant, what is the
price of the bond immediately before it makes its first coupon
payment?
c. Assuming the yield to maturity...
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value...
Suppose that Ally Financial Inc. 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 %.
a. What was the price of this bond when it was
issued? (round to the nearest cent).
b. Assuming the yield to maturity remains
constant, what is the price of the bond immediately before it makes
its first coupon...
Suppose that Ally Financial Inc. issued a bond with 10 years until maturity, a face value...
Suppose that Ally Financial Inc. 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%.
a. What was the price of this bond when it was issued? (round to
the nearest cent)
b. Assuming the yield to maturity remains constant , what is the
price of the bond immediately before it makes it first coupon
payment?...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please answer these questions Data Processing and Analysis using python. Thank you In statistics, an outlier...
- Write a function file that accepts each of the four vectors as inputs. The function file...
- Kant says that to act morally is to act out of duty. How does this differ...
- Suppose you are trying to determine the capacity (in gallons) of the gas tank needed on...
- List the arithmetic operators used in BASIC and state their priorities of execution in a statement....
- Describe the espoused values of a company you have worked for (or been exposed to -...
- Can you explain to me the differnces in how we paid for the health care (access...
ADVERTISEMENT