Question
In: Finance
General Electric has just issued a callable (at par) 10-year, 6.0% coupon bond with annual coupon...
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 the bond's yield to maturity?
b. What is its yield to call?
c. What is its yield to worst?
Solutions
Expert Solution
a.
Calculate the Yield to maturity as follows:
YTM is 5.73%.
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b.
Calculate the Yield to call as follows:
YTC 3.92%.
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c.
Yield to worst is lowest Yield
Answer: 3.92%.
jeff jeffy answered 7 months agoRelated Solutions
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