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Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a...

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Finance

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 7.3% (annual payments). The yield to maturity on this bond when it was issued was 6.5%. What was the price of this bond when it was issued?

Part 1

When it was issued, the price of the bond was

$enter your response here.

(Round to the nearest cent.)

Answer & Explanation Solved by verified expert
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