A newly issued bond pays its coupons once annually. Its coupon rate is 5.2%, its maturity is 20 years, and its yield to maturity is 8%. Required: a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year. b. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30% ? The bond is subject to original-issue discount tax treatment. c. What is the after-tax holding-period return on the bond? d. Find the realized compound yield before taxes for a 2-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 7% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 3% interest rate. e. Use the tax rates in part (b) to compute the after-tax 2-year realized compound yield. Remember to take account of OID tax rules. Complete this question by entering your answers in the tabs below. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30% ? The bond is subject to original-issue discount tax treatment. Note: Do not round intermediate calculations. Round your answers to 2 decimal places