1. Tara is in the 30% Tax bracket. Her stockbroker recommends that she invest in a municipal bond yielding 6%. However, she could also invest in a taxable bond yielding 8.25% Which should she choose? 2. Your grandmother is in the 28% tax bracket and wants to buy a Muni bond yielding 7%. Her stockbroker recommends a taxable bond which yields 9.5%. Which should she choose? 3. Disney Corporation issued 25-year bonds with an 8% coupon rate. Par value is $1,000. Assuming the bonds pay annually: a. What is the price of the bond if the current yield to maturity (YTM) is 7% ? What is the current yield of this bond? b. What is the price of the bond if the current yield to maturity (YTM) is 13 %? What is the current yield of this bond? 4. ABC Corporation issued 20-year bonds with a 10% coupon rate. The face value is $1,000. Assuming the bonds pay annually: a. What is the price of the bond if the current yield to maturity (YTM) is 9 %? What is the current yield of this bond? b. What is the price of the bond if the current yield to maturity (YTM) is 6%? What is the current yield of this bond