What should be the market price the buyer should expect

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Question - General Motors (GM) issued a 10-year bond 2 years ago with an interest coupon of 4.0% that is paid annually. At maturity in 8 years, a single GM bond will pay out $1,000. If investors currently require a return of 5.0% on bonds with GM's risk profile, what should be the market price the buyer should expect to pay on the bond?

Reference no: EM133118235

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