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 12%
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?
a. What was the price of this bond when it was issued?
The price of this bond when it was issued was $______. (Round to the nearest cent.)