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A 4 . 2 0 percent coupon municipal bond has 1 4 years left to maturity and has a price quote of 9 7 .

A 4.20 percent coupon municipal bond has 14 years left to maturity and has a price quote of 97.55. 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 36 percent marginal tax bracket).
Compute the yield to call.

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