10 A newly issued bond pays its coupons once a year. Its coupon rate is 4.5%, its maturity is 20 years, and its yield to maturity is 75% 0.5 a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) points Answer is complete and correct. Holding-period retum 19.61 % b. If you sell the bond after one year when its yield is 6.5%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. $ 45.00 Tax on interest income Tax on capital gain Total taxes $ 27.34 X $ 72.34 TO home / study / c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 0.5 points Questid Answer is complete and correct. After-tax holding-period return 13.08 % A newly issue yield to matur d. Find the realized compound yield before taxes for a two-year holding period, assuming that you sell the bond after two years, (ii) the bond yield is 6.5% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 25% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. Find the hol maturity of 6.3 decimal places Holding-period b. If you sell the interest income issue discount decimal places. Answer is complete but not entirely correct. Realized compound yield before taxes 16.11 X % Tax on interest e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Tax on capital Total taxes Answer is complete but not entirely correct. After-tax two-year realized compound yield 16.11 % % c. What is the afts