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1. Assume semi-annual payments. What is the coupon rate for a 18-year bond with a yield of 4.796% and a price of $1,072.02? 2. Investors

1. Assume semi-annual payments. What is the coupon rate for a 18-year bond with a yield of 4.796% and a price of $1,072.02?

2. Investors with very high tax rates should always prefer corporate bonds due to taxation. (T/F)

3. Assume semi-annual payments. What is the coupon rate for A bond? (Note: Becuase you are given "t" do not multiply it by 2 and remember that price quotes are as a percentage of $1000. This means to get the price, move the decimal over 1 place. For example, a price quote of 99.99 is equal to a price of $999.9.)

Bond

Coupon Rate

Yield

Price Quote

t

A

2.048

108

4.338

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