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A 3 . 2 0 percent coupon municipal bond has 1 0 years left to maturity and has a price quote of 9 6 .

A 3.20 percent coupon municipal bond has 10 years left to maturity and has a price quote of 96.45. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and it has a par value of $5,000.)
Compute the bonds current yield.
Compute the yield to maturity.
Compute the taxable equivalent yield (for an investor in the 35 percent marginal tax bracket).
Compute the yield to call.

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