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Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a...

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Accounting

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Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.9% (annual payments). The yield to maturity on this bond when it was issued was 6.3%. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? Before the first coupon payment, the price of the bond is $ (Round to the nearest cent.)

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