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An investor recently bought a Treasury Bond at PAR maturing in 20 years with a coupon rate of 10%. The investor is in the 25%
An investor recently bought a Treasury Bond at PAR maturing in 20 years with a coupon rate of 10%. The investor is in the 25% tax bracket.
A tax-free municipal bond is currently yielding 5%.
Calculate the tax equivalent yield, annual coupon payment, and total payments over the life of the bond.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
