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4 years ago, you bought a municipal bond with the face value of $1000. It pays an annual coupon of $60. The interest rate over
4 years ago, you bought a municipal bond with the face value of $1000. It pays an annual coupon of $60. The interest rate over the past 4 years was as follows. Year Interest Rate 10% 2021 (Current) 2020 2019 8% 10% 11% 2018 2017 12% The bond will mature in 6 years. If you were in the 24% federal income tax bracket, what is the present value of your returns from this bond so far? Hints: 1) review notes and slides about municipal bonds Focus what the question means by saying "present value." 2)
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