Question
General Electric has just issued a callable(at par)10-year, 6.0 % 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, 6.0 % 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 $ 102.00.
a. What is thebond's yield tomaturity?
b. What is its yield tocall?
c. What is its yield toworst?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
