General Motors issued 10-year bonds in August of 2017. The bonds make semi-annual payments (twice per...
General Motors issued 10-year bonds in August of 2017. The bonds make semi-annual payments (twice per year), on April 4 and September 30 of every year, with the first payment of April 4, 2018, and the last on September 30, 2027. The coupon rate is 4.2%.
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(a) Assuming a principal of 100, what would the bond’s cash flow starting from September 30, 2017?
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(b) The bond is currently selling fo $101.57 (per 100 of face value). If you buy the bind today, what cash flow would it generate (per 100 of favce value).
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General Motors issued 10-year bonds in August of 2017. The bonds
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