Compute how much interest a company would pay in 2023 on a 10-year, $100,034 dollar loan (which it takes out today) that has an interest rate contractually set to equal 2.75% above the 1-year Treasury bond yield on June 15 each year if that specified T-bond rate turns out to be 14.42% on June 15, 2023.

 

B) Show the tax benefit (per dollar investor) that exists on a municipal bond with a yield of 34 basis points (where one basis point is 0.01%, so that the yield would be 0.01%x45=0.45% for 34 basis points ) for an investor in the marginal  37% tax bracket.

 

C) Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with semiannual payments, and a 13-year maturity if the price is $838.21

 

D) Compute the expected annual change in the Japanese Yen over the next 30 years based on market expectations.