Question: Please help me solve this question and explain The Wall Street Journal carried the following advertisement for a corporate bond issue by GE Corporation on

Please help me solve this question and explain

The Wall Street Journal carried the following advertisement for a corporate bond issue by GE Corporation on November 15, 2006: 20-year bonds rated AA paying coupons at the rate of 7%. Coupons are paid semi-annually. The price of the bond on November 15,2006 is $995.00. If the face value of the bond is $1,000, what is the yield to maturity on this bond? ( 12 points) 7.05%3.54%14.08%7.10% Question 12 (Mandatory) (4 points) The recent bond issue of AT\&T received a rating of " A " by Moodys. The " A " rating indicates (4 points) The bonds are investment grade The bonds are junk bonds. The financial officer of AT\&T aced his finance course The bond is sensitive to interest rate changes

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