Paid quarterly interest with annual coupon

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Reference no: EM131975784

General Electric has an outstanding bond that paid quarterly interest with an annual coupon of 4.25%, with yield to maturity (required rate of return) of 3.85% and a maturity date of February 15, 2028.

a) What is the price ( as a percentage of principal) of the bond with a settlement date of February 15, 2018? If the yield (required rate of return) of this bond goes up 75 basis points what would the new price be?

Reference no: EM131975784

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