A 6.85 percent coupon bond with 18 years left to maturity is offered for sale at $1,025.30. What yield to maturity is the bond offering? (Assume interest payments are semiannual.)

(Round your final answer to 2 decimal places)

2.

What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.6 percent for an investor in the 33 percent marginal tax bracket?

(Round your answer to 2 decimal places.)

3. A 6.05 percent coupon bond with fifteen years left to maturity is priced to offer a 7.1 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollars?

(Do not round intermediate calculations and round your final answer to 2 decimal places.)

4. A 6.60 percent coupon bond with 26 years left to maturity can be called in seven years. The call premium is one year of coupon payments. It is offered for sale at $1,115.95. What is the yield to call of the bond? (Assume interest payments are semiannual.)

(Round your answer to 2 decimal places.)

5. A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.10 percent yield to maturity and a similar-risk corporate bond that offers a 7.25 percent yield.

Determine the equivalent taxable yield. (Round your answer to 2 decimal places)

Which bond will give the client more profit after taxes? Municipal or Corporate bond?

6.

A 4.05 percent coupon municipal bond has 14 years left to maturity and has a price quote of 108.00. 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 bond