General Electric has just issued a callable (at par) 10-year, 5.7% 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 $102.43. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst?
General Electric has just issued a callable (at par) 10-year, 5.7% 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 $102.43. a. What is the bond's yield to maturity? b. What is its yield to call? c. What is its yield to worst?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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General Electric has just issued a callable (at par) 10-year,
5.7%
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
$102.43.
a. What is the bond's yield to maturity?
b. What is its yield to call?
c. What is its yield to worst?
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