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Issuer Type Rating Time to maturity Coupon YTM Feature Par, Premium, or Discount? GE Corporate AAA 3 years 2.25% 2.5% Not Callable WMT Corporate AAA

Issuer

Type

Rating

Time to maturity

Coupon

YTM

Feature

Par, Premium, or Discount?

GE

Corporate

AAA

3 years

2.25%

2.5%

Not Callable

WMT

Corporate

AAA

3 years

2.5%

2.5%

Callable

Boston Rev Bond

Municipal

AAA

3 years

3%

1.70%

Not Callable

  1. What is the value of the WMT bond?
  2. What is the value of the GE bond?
  3. You are trying to decide between the GE bond and the municipal bond. If you are in a 35% tax bracket, which bond should you choose?

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