A General Motors bond carries a coupon rate of 8 percent, has 9 years until maturity, and sells at a yield to maturity of 7 percent.

A General Motors bond carries a coupon rate of 8 percent, has 9 years until maturity, and sells at a yield to maturity of 7 percent.

a. What interest payments do bondholders receive each year?

b. At what price does the bond sell? (Assume annual interest payments.)

c. What will happen to the bond price if the yield to maturity falls to 6 percent?

6. An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100.

a. What is the current yield on the bond?

b. What is the yield to maturity?

PS what is (1.06) raised to the 40th power?

A General Motors bond carries a coupon rate of 8 percent, has 9 years until maturity, and sells at a yield to maturity of 7 percent.