General Electric has just issued a callable (at par) ten-year 8% 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 $104 and a face value of $104.
a) What is the bond's yield to maturity and yield to call?
The yield to maturity is.................... %. (Round to two decimal places.)
b) What is the bond's yield to call?
The yield to call is...................... %. (Round to two decimal places.)