Suppose av

$5-$year,

$$$$1$ comma $0001,000$

bond with annual coupons has a price of

$$$$897\mathrm{.}72897\mathrm{.}72$

and a yield to maturity of

$5\mathrm{.}9\%5\mathrm{.}9\%.$

What is the$$ bond's coupon$$ rate?

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Suppose that General Motors Acceptance Corporation issued a bond with

$1010$

years until$$ maturity, a face value of

$$$$1$ comma $0001,000,$

and a coupon rate of

$7\mathrm{.}2\%7\mathrm{.}2\%$

$($annual payments$).$ The yield to maturity on this bond when it was issued was

$5\mathrm{.}6\%5\mathrm{.}6\%.$

What was the price of this bond when it was$$ issued?

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Part $1$

When it was$$ issued, the price of the bond was

$$$