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?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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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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