What interest payments do bondholders receive each year


Problem: A general motors bond (face value of $1000) carries a coupon rate of 8 percent, has 9 years until maturity, and sells at a yeild to maturity of 9 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 7%?

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Finance Basics: What interest payments do bondholders receive each year
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