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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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    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