Question
A 3.50 percent coupon municipal bond has 13 years left to maturity and has a price quote of 96.85. The bond can be called in
A 3.50 percent coupon municipal bond has 13 years left to maturity and has a price quote of 96.85. 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 bond's current yield.(Round your answer to 2 decimal places.)
Current yield___%
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 35 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_____%
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