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 there-after on a coupon payment date. It has a price of $102.
a. What is the bond's yield to maturity?
b. What is its yield to call?
c. What is its yield to worst?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
