Explore BrainMass

# Yield to maturity and yield to call

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

General Electric has just issued a callable (at par) ten-year, 6% 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. What is the bond's yield to maturity and yield to call?

Can you help me get started with this assignment?

#### Solution Preview

Please see ** ATTACHED ** file(s) for complete solution and details!!

General Electric has just issued a callable (at par) ten-year, 6% 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.  What is the bond's yield to maturity and yield to call?

Yield to maturity

Yield to maturity can be calculated using Excel worksheet function RATE

Data
No of years to maturity= 10
Coupon rate= 6.00%
Face ...

#### Solution Summary

Calculates yield to maturity and yield to call for a bond.

\$2.19