Question
A 4.70 percent coupon municipal bond has 19 years left to maturity and has a price quote of 107.00. The bond can be called in
A 4.70 percent coupon municipal bond has 19 years left to maturity and has a price quote of 107.00. 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. (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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