Question
General Electric Corporation has a $1000 par value bond paying annual interest of 6%. The bond will mature in 20 years. The current yield to
General Electric Corporation has a $1000 par value bond paying annual interest of 6%. The bond will mature in 20 years. The current yield to maturity for this bond is 9%.
a. How much income does the bond holder receive annually?
b. What is the current price of the bond?
c, is this a premium bond or discount bond?
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The Professional Risk Managers Guide To Financial Market Bond Markets
Authors: Professional Risk Managers' International Association (PRMIA)
1st Edition
0071738932
