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General Electric has just issued a callable 10-year, 5% coupon bond with annual coupon payments. The bond can be called at par in one year
General Electric has just issued a callable 10-year, 5% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $101. What is the bond's yield to maturity and yield to call? a) YTM = 3.92%; YTC = 5.73% b) YTM = 5.73%; YTC = 3.92% c) YTM = 3.73%; YTC = 5.92% d) None of the answers is correct e) YTM = 4.87%; YTC = 3.96%
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