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3. What price should the municiple bond trade at in order to have a YTM 70 basis points above the treasury bond of the same

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3. What price should the municiple bond trade at in order to have a YTM 70 basis points above the treasury bond of the same maturity. Assume a 35% tax rate Show your calculations Muni Bond Treasury Bond Price 1150 Prices Annual coupon Face value Maturity 5% Semi-annual coupon 1000 Face value 5 Maturity 6% 1000

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