3 Problem 14-31 A newly issued bond pays its coupons once annually Its coupon rate is 8.5%, its maturity is 20 years, and its yield to maturity is 10.5% 6.66 points . Find the holdingperiod return for a 1-year investment period if the bond is selling at a yield to maturity of 9.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places. O Answer is complete but not entirely correct. -period 91 35 0% b.If you sell the bond after one year, what taxes will you owe 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 tax treatment (Do not round intermediate calculations. Round your enswers to 2 decimal places.) & Answer is complete but not entirely correct. Tax on interest incone Tax on capital gain Total taxes 16.80 0 22 99 0 39 79 hat is the after-tax holdinq-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal c. What is the after-tax holding-period return on the bond? (Do not round intermediste celculetions. Round your answer to 2 decimal places.) points Answer is complete and correct. 1265O d. Find the realized compound yield before taxes for a 2-year holding period, assuming that () you sell the bond after two years, (2) the bond yield is 95% at the end ofthe second year, and G, the coupon can be reinvested for one year at a 3% interest rate (Do not round intermediate calculetions. Round your answer to 2 decimal places) O Answer is complete but not entirely correct. compound yield betore 100290% e. Use the tax rates in (b) above to compute the after-tax 2-year realized compound yield. Remember to take account of OlD tax rules (Do not round intermediate celculations. Round your answer to 2 decimal places.) O Answer is complete but not entirely correct. tax 2-year realized compound 6290 %