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c. What is the (Do not round d. Find the realized compound yleld before taxes for a two-year holding period, assuming that o you sell

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c. What is the (Do not round d. Find the realized compound yleld before taxes for a two-year holding period, assuming that o you sell the bond after two years, n the bond yield is 66% at the end of the second year, and dip the coupon can be reinvested for one year at a 2.6% interest rate. (Do not round Intermediate calculations. Round your answer to 2 decimal places) e Use the tax rates in part (by to compute the after-tax two-year reslized compound yield Remember to take account of OID tax rules. Do not round intermediate calculations. Round your answer to 2 decimal places) %1 A newly issued bond pays its coupons once a year. Its coupon rate is 46%, its maturity is 10 years, and its yield to maturity is 76%. A newly issued bond pays its coupons once a year. Its coupon rte is 46%, its maturity is 10 years, and its yield to maturity is 76% a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 66% by the end of the year. (Do not round Intermedlate calculations. Round your answer to 2 declmal places.) Answer is complete and correct. 14.00 b. if you sell the bond after one year when its yield is 6.6%, what taxes wi" you owe if the tax rate on interest income is 40% and the tax rate on c.p algains income is 30%? The bond is subject to original-issue discount OD tax treatment Do not round Intermediate calculations. Round your answers to 2 declmal places.) Answer is complete and correct. Tax on interest income Tax on captal gain Total taxes 24 17 41 57 0

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