Ford is about to issue a new corporate bond face value 1000, Ask an Expert

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Ford is about to issue a new corporate bond, face value= $1,000, coupon rate= 8% (annual), term to the maturity= 4 years. You know that a very similar bond issued by GM is already being traded in a bond market with its market price of $1,020, face value= $1,000, coupon rate= 6% (annual) and term to the maturity= 4 years. What would be the appropriate value of Ford's new corporate bond? (Assume that coupons are paid annual for Ford and GM bonds) (DO NOT USE EXCEL)

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Financial Management, Finance

Category:- Financial Management
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