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22) You sell a 6 percent $10,000 bond for $9,180 plus S165 in accrued interest for a total of S9,345. Soon thereafter the company makes

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22) You sell a 6 percent $10,000 bond for $9,180 plus S165 in accrued interest for a total of S9,345. Soon thereafter the company makes a $300 interest payment. You are in the 20 percent income tax bracket. How much tax do you owe on the interest? a. $31.20 b. $33.00 c. $60.00 d. None, as the seller I don't pay tax on the interest 23) An 8 year corporate bond (semi-annual) has a 7 percent coupon and is currently selling for $1,130.55. What are interest rates currently? a. 2.50% b. 3.50% c. 5.00% d. 7.00% 24) A 7% coupon bond (semi-annual) is currently selling for $1,037.62 with a par value of $1,000. Market rates are currently 5 percent. What is the term to maturity of the bond? a. 2 years b. 4 years c. 6 years d. 8 years

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