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consider a newly issued 6 % coupon bond with 1 5 years until maturity. The face value is $ 1 0 0 0 . The
consider a newly issued coupon bond with years until maturity. The face value is $ The coupons are paid once per year and the bond's yield to maturity is The yield to maturity of the bond changes to by the end of the year. Suppose the interest income tax rate is and the tax rate on capital gains is The bond is subject to the original issue discount treatment. IF you sell the bond after year, how much taxes will you owe in total?
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