Question
General Electric has just issued a callable (at par) 10-year, 6% coupon bond with annual coupon payments. The bond can be called at par in
General Electric has just issued a callable (at par) 10-year, 6% 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 $102.
a.What us the bond's yield to maturity?
b.What is the yield-to-call?
c.What is the yield-to-worst?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
