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Yield to maturity and yield to call

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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?

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Solution Summary

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

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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 ...

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