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A 4.30 percent coupon municipal bond has 12 years left to maturity and has a price quote of 106.30. The bond can be called in
A 4.30 percent coupon municipal bond has 12 years left to maturity and has a price quote of 106.30. The bond can be called in eight 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
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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