**Suppose that GM issues a bond with ten years until maturity, a face value of $1000, and a coupon rate of 7%(annual payments). The yield to maturity (YTM) on this bond when it was issued was 6%. **

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**a. What was the price of this bond when it was issued?**

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**b. 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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**c. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?**

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***Use the formula in the attachment)**

Subject | Mathematics |

Due By (Pacific Time) | 10/04/2012 09:00 pm |

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