Check my work A newly issued bond pays its coupons once a year. Its coupon rate is 5.5%, its maturity is 10 years, and its yield to maturity is 8.5%. a. Find the holding period return for a one-year investment period if the bond is seling at a yield to maturity of75%by the end ofthe year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 10 points Holding period return 15 41 % ! eBook Print References b. If you sell the bond after one year when its yield is 7.5%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Tax on interest income Tax on capital gain Total taxes 27.31 20.78 26.09 Check my work c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 10 points After-tax holding-period return 948% eBook Print References d. Find the realized compound yield before taxes for a two-year holding period assuring that you sel the bond ater two years. the bond yield is 7.5% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 35% interest rat round intermediate calculations. Round your answer to 2 decimal places.) not Realized compound yield before taxes 11 291 % ! e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules (Do not round intermediate calculations. Round your answer to 2 decimal places.) After-tax two-year realized compound yield 8 491 %