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A newly issued bond pays its coupons once a year. Its coupon rate is 5.9%, its maturity is 20 years, and its yield to maturity
A newly issued bond pays its coupons once a year. Its coupon rate is 5.9%, its maturity is 20 years, and its yield to maturity is 3.9% . Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7.9% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return % . If you sell the bond after one year when its yield is 7.9%, what taxes will you owe if the tax rate on interest income is 40% and he tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round ntermediate calculations. Round your answers to 2 decimal places.) Tax on interest income Tax on capital gain
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