1. Calculate the pretax yield(yp), after tax yield implied by the potentially-flawed formula(ya), after-tax yield assuming capital gains are only taxed at maturity and coupon payments are taxed normally(ya1), and after-tax yield assuming capital gains are only taxed at maturity and coupon payments are tax-exempt(ya2) for the following if P & R are the price and coupon rate of an annual 3-year coupon bond. Par Value is $1,000. The first row is given.

Given: P=$900 CR=5% Marginal tax rate-40% yp=8.947% ya=5.368% ya1=5.439% ya2=7.617%

1a. P=$1,000 CR=5% Marginal tax rate=40% yp=? ya=? ya1=? ya2=?

1b. P=900 CR=10% Marginal tax rate=40% yp=? ya=? ya1=? ya2=?

1c. P=900 CR=5% Marginal tax rate=50% yp=? ya=? ya1=? ya2=?