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16. (8 points) Ten years ago, GE issued a 7.5% annual coupon bond that matures on September 26, 2031 (i.e., 15 years from today). The
16. (8 points) Ten years ago, GE issued a 7.5% annual coupon bond that matures on September 26, 2031 (i.e., 15 years from today). The bond is currently trading for $1,284. a. (4 points) Calculate the bond's Yield to Maturity. I YTM=4.8% b. (4 points) Assume the bond is callable at 105 starting on September 26, 2021 (i.e., 5 years from today). Calculate the bond's Yield to Call. YTC= 2.36%
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Quantitative Finance Its Development Mathematical Foundations And Current Scope
Authors: T. Wake Epps
1st Edition
0470431997, 9780470431993
