Use the following information to answer question 1) A-F. Assume today is 12/27/2016. An assistant portfolio manager reviewed the prospectus of a General Electric Corporate (US) bond that will be issued on January 15 of 2017. The Offering Price is 104.50. The call schedule for this $200 million, 5.75% coupon 20-year issue specifies the following:

The Bonds will be redeemable at the option of the Company at any time in whole or in part, upon not fewer than 30 nor more than 60 days notice, at the following redemption prices (which are expressed in percentages of principal amount) in each case together with accrued interest to the date fixed for redemption:

If redeemed January 15,

2020 through 2026	102.50%
2027 through 2030	102.00%
2031 through 2032	101.50%
From 2033 on	100.00%

Sinking Fund: The prospectus further specifies that:

The Company will provide for the retirement by redemption of $40 million of the principal amount of the Bonds each January 15th of the years 2032 to and including 2036 at the principal amount thereof (100%), together with accrued interest to the date of redemption.

The assistant portfolio manager made the following statement to a client after reviewing this bond issue. Comment on the statement. (When answering this question, remember that the assistant portfolio manager is responding to statements just before the bond is issued in 2017.)

This is the assistant portfolio managers statement:

1. In response to a client question about what will be the interest and principal that the client can depend on if $5 million par value of the issue is purchased, the assistant portfolio manager responded: I can construct a schedule that shows every six months for the next 20 years the dollar amount of the interest and the principal repayment. It is quite simple to compute basically it is just multiplying two numbers.

Your comment on this statement:

Answer the following as of issue date: 1/15/2017.

2. What is the bonds current yield?
3. What is the bonds yield to maturity?
4. What is bonds yield to first call?
5. What is bonds yield to first sink?
6. What is yield to the 2031 call?