General Electric has an outstanding bond that paid quarterly interest with an annual coupon of 4.25%,...

General Electric has an outstanding bond that paid quarterly interest with an annual coupon of 4.25%, with a yield to maturity (required rate of return) of 3.85% and a maturity date of September 15, 2030.

a) What is the price (as a percentage of principal) of the bond with a settlement date of September 15, 2020? If the yield (required rate of return) of this bond goes up 75 basis points what would the new price be?

Expert Solution

jeff jeffy answered 2 years ago

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