Bond sold by general motors

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Reference no: EM131998066

1. A bond sold by General Motors Corp. has a face value on $1,000, a coupon payment of $70 per year, and a maturity of 3 years. The first coupon payment occurs a year from now. The market price is $720, what is the YTM?

2. A bond sold by General Motors Corp. has a face value on $1,000, a coupon payment of $70 per year, and a maturity of 3 years. The first coupon payment occurs a year from now. The market price is $720, what is the YTM? You can use Excel’s IRR function to solve this one. There will be 3 cash flows for the 3 years of $70, $70, and $1,070.

Reference no: EM131998066

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