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 7.1 % (annual payments). The yield to maturity on this bond when it was issued was 5.8 %. What was the price of this bond when it was issued?
Homework Answers
Solution :
The price of this bond when it was issued = $ 1,096.59
= $ 1,097 ( when rounded off to the nearest whole number )
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
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Suppose that General Motors Acceptance Corporation issued a bond
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