Project #37866 - bonds

Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer.  What other factors may influence the value of a bond? 

 

Company: GMAC Inc

 

Price: 100.90

 

Coupon: 2.456

 

Maturity: 1 Dec 14

 

YTM%: -0.745

 

Current Yield: 2.434

 

Rating: BB

 

Callable: No

 

Subject Mathematics
Due By (Pacific Time) 08/14/2014 09:58 pm
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