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

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Accounting

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 7.7% (annual payments). The yield to maturity on this bond when it was issued was 5.6%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?

After the first coupon payment, the price of the bond will be $_____. (Round to the nearest cent.)

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