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A 2.60 percent coupon municipal bond has 10 years left to maturity and has a price quote of 95.25. The bond can be called in
A 2.60 percent coupon municipal bond has 10 years left to maturity and has a price quote of 95.25. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) |
Compute the bonds current yield. (Round your answer to 2 decimal places.) |
Current yield | 2.73 % |
Compute the yield to maturity. (Round your answer to 2 decimal places.) |
Yield to maturity | % |
Compute the taxable equivalent yield (for an investor in the 30 percent marginal tax bracket). (Round your answer to 2 decimal places.) |
Equivalent taxable yield | % |
Compute the yield to call. (Round your answer to 2 decimal places.) |
Yield to call | 4.52 % |
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