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Business, 15.07.2020 20:01 barattah

Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1 comma 000, and a coupon rate of 7.5 % (annual payments). The yield to maturity on this bond when it was issued was 6.3 %. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment?

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