Question
General Electric has just issued a callable(at par)10-year, 5.6 % coupon bond with annual coupon payments. The bond can be called at par in one
General Electric has just issued a callable(at par)10-year, 5.6 % 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 $ 101.58.
a. What is thebond's yield tomaturity?
b. What is its yield tocall?
c. What is its yield toworst?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
