Assume you have a 1-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. The second has an 8.4% coupon rate and pays the $84 coupon once per year. The third has a 10.4% coupon rate and pays the $104 coupon once per year.

Help me find the correct ones.

Round your answers to 2 decimal places.

c. What is your before-tax holding-period return on each bond? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Zero Coupon 8.4% Coupon 10.4% Coupon Pre-tax rate of return 4.82 X % 3.87 X % 4.01 X % d. If your tax bracket is 30% on ordinary income and 19.6% on capital gains income, what will be the after-tax rate of return on each bond? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. 10.4% Coupon After-tax rate of return Zero Coupon 4.82 % 8.4% Coupon 3.87% 4.01% e. Recalculate your answers to (b)-(d) under the assumption that you expect the yields to maturity on each bond to be 5% at the beginning of next year. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Zero Coupon 8.4% Coupon 10.4% Coupon $ 1,383.82 $ 644.61 IS 1,241.67 Price 1 year from now Pre-tax rate of return After-tax rate of return 15.44% 5.26 % 4.53 X % 12.42 X % 9.21 % 9.14% c. What is your before-tax holding-period return on each bond? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Zero Coupon 8.4% Coupon 10.4% Coupon Pre-tax rate of return 4.82 X % 3.87 X % 4.01 X % d. If your tax bracket is 30% on ordinary income and 19.6% on capital gains income, what will be the after-tax rate of return on each bond? (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. 10.4% Coupon After-tax rate of return Zero Coupon 4.82 % 8.4% Coupon 3.87% 4.01% e. Recalculate your answers to (b)-(d) under the assumption that you expect the yields to maturity on each bond to be 5% at the beginning of next year. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Zero Coupon 8.4% Coupon 10.4% Coupon $ 1,383.82 $ 644.61 IS 1,241.67 Price 1 year from now Pre-tax rate of return After-tax rate of return 15.44% 5.26 % 4.53 X % 12.42 X % 9.21 % 9.14%