Question
Assume you have the following information for a municipal bond on November 6, 2020: Price Coupon (%) Maturity Fitch Ratings 105.112 4.675 Jan. 1, 2034
- Assume you have the following information for a municipal bond on November 6, 2020:
| Price | Coupon (%) | Maturity | Fitch Ratings |
| 105.112 | 4.675 | Jan. 1, 2034 | AAA |
Calculate the Yield to Maturity of the municipal bond.
Calculate the taxable equivalent yield of this bond, assuming the tax rate is 25%.
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
