10 A newly issued bond pays its coupons once annually. Its coupon rate is 72%, its maturity is 20 years, and its yield to maturity is 9% a. Find the holding period return for a 1-year investment period of the bond is selling at a yield to maturity of 8% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding period retum 10.08 b. If you sell the bond after one year, what taxes will you owe If the tax rate on interest income is 40% and the tax rates on capital gains income is 30%? The bond is subject to original-issue discount tox treatment. (Do not round Intermediate calculations Round your answers to 2 decimal places.) Tax on est income Tax on capital gain Totales 5 $ $ 30.08 25 28 55.37 c. What is the after tax holding period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places) Aste holdepenodrum 1240 553 10 c. What is the ahertax holding period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places) Ater Holding periodu 13:40 d. Find the realized compound yield before taxes for a 2 year holding period, assuming that you sell the bond after two years, the bond yield is 8% at the end of the second year and the coupon can be reinvested for one year ata 3% interest rate (Do not round Intermediate calculations. Round your aniwer to 2 decimal places) Head compounded before 1322 e. Use the tax rates in port (b) to computo the after-tax 2-year realized compound yield. Remember to take account of Old tax rules. (Do not round intermediate calculations, Round your answer to 2 decimal places.) Aturtas 2 year old condy