Question: Question 32 (2.5 points) General Electric's bond has five years remaining to maturity. Interest is paid semiannually, the bonds have a $1,000 par value, and
Question 32 (2.5 points) General Electric's bond has five years remaining to maturity. Interest is paid semiannually, the bonds have a $1,000 par value, and the coupon rate is 12 percent. Compute the yield to maturity (YTM) for the bonds if the current market price is $1,100. 1) 4.69% 2) 6.28% 3) 8.55% 4) 9.44% 5) 12.34% Question 33 (2.5 points) Five years ago, Messy Tree Service Corp issued a 20-year bond with a $1,000 maturity value and a 10 percent coupon rate. Interest is paid semiannually. The bond is currently selling for $850. If the bond can be called in four years for a redemption price of $1,100, what is the bond's yield to call (YTC)? MacBook Air 30 FS A 2 $ 4 3 % 5 6 & 7 8 9 W E 20 T Y U S D F G I J K
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