Consider the below quote from Yahoo! Finance for a General Electric bond issue. The bond has a

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Consider the below quote from Yahoo! Finance for a General Electric bond issue. The bond has a $1000 face value.If it can be called in 4 years at $1275.00, what is this bond's current yield? Yield-to-Maturity? Capital gains yield? And yield to call?Is an investor in this bond likely to receive the YTM or the YTC? Why?

GE CAPITAL INTERNOTES

As of 5-March-2021

OVERVIEW

Price: 106.25

Coupon (%): 6.000

Maturity Date: 2038

Yield to Maturity (%): ????

Current Yield (%): ????

Fitch Ratings: AA

Coupon Payment Frequency: Semi-annual

Type: Corporate

Callable: Yes

Related Book For answer-question

Financial Management Theory and Practice

ISBN: 978-0176517304

2nd Canadian edition

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

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Posted Date: Apr 09, 2024 12:24 PM

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Consider the below quote from Yahoo! Finance for a General Electric bond issue. The bond has a

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Expert Answer:

Based on the information provided Current Yield We can calculate this as the annual coupon payment divided by the current price Current Yield Coupon Rate Face Value Current Price 2 since its semiannua... View the full answer

Financial Management Theory and Practice

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