Question: Problem 2 4 - 1 1 General Electric has just issued a callable 1 0 - year, 6 % coupon bond with annual coupon payments.
Problem General Electric has just issued a callable year, 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 $ What is the bond's yield to maturity and yield to call?Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reterence is all you need. To copypaste a formula across a row or dowa a column, an absolute cell reference or a mixed cell reference may be preferred. If a specitie Excel function is to be used, the directions will specify the use of that functioa. Do not type in numerical data into a colt or function. Instead, make a reference to the cell in which the data is found. Make your compatations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the carliest apposrance of the data in your formulas, usually the Given Data section.Coupon ratePayment trequenerTime until first call date yearsTerm of bond iyearsCall priceCurrent priceAnnualls$Coupon paymentWield to callWield to maturityRequirementsStart Exeel completed Ln cell D by using cell references, calculate the annual coupon payment pt In cell D by using eell references and the function RATE, calculate the yield to call of the bond ptNote: Do not enter any value for the Guess argument of the function KAle In cell D oy using cell references and the function RITE, calculate the yield to maturity of the bond ptNote: Do not enter any value for the Guess argument of the function RATE! Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.
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