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General Electric has just issued a callable​ (at par)​ 10-year, 5.7 % coupon bond with annual...

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Finance

General Electric has just issued a callable​ (at par)​ 10-year,5.7 % coupon bond with annual coupon payments. The bond can becalled at par in one year or anytime thereafter on a coupon paymentdate. It has a price of $ 101.87. 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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4.2 Ratings (588 Votes)
Part 1 The yield to maturity of the bond can be calculated with the use of Rate functionformula of EXCELFinancial Calculator The functionformula for Rate is RateNperPMTPVFV where Nper Period PMT Payment here Coupon Payment PV Present Value here Current    See Answer
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