Assuming the yield to maturity remains? constant

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Suppose that Ally Financial Inc. issued a bond with 10 years until? maturity, a face value of $1,000?, and a coupon rate of 10% ?(annual payments). The yield to maturity on this bond when it was issued was 4 %.

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

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

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

Reference no: EM131976361

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