A U.S. Treasury bond pays 5 percent interest. You are in the 22 percent tax bracket. What is your after-tax yield on this bond?

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Question 2

If you face a 22% marginal tax rate, what is your after-tax return on each of the following bonds?

A 4% coupon semiannual corporate bond with 6 years to maturity, currently selling for $860. %

A 9% coupon semiannual corporate bond with 14 years to maturity, currently selling for $1,080.

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A 8% coupon semiannual municipal bond with 10 years to maturity, currently selling for $1,056.