Question
If you are hunting for the highest yield to maturity, which bond would you select if your marginal tax rate is 40.25%: a. Bond A:
If you are hunting for the highest yield to maturity, which bond would you select if your marginal tax rate is 40.25%:
a. Bond A: PNC Financial Services Callable 4/23/29, Coupon 3.45%. Priced at 99.476 YTM of 3.508%
b. Bond B: Wisconsin Power & Light Callable 4/1/2029, Coupon 3.00%. Priced at 96.247; YTM of 3.595%
c. Bond C: Sumitomo Mitsui Financial Group Non-Callable, Coupon 3.04%. Priced at 94.163; YTM of 3.973%.
d. Bond D: Southern Cal Edison Make-Whole Callable 5/1/2029, Coupon 2.85%. Priced at 93.524; YTM of 3.877%.
e. Bond E: Commonwealth of Pennsylvania Financing Authority Revenue Bonds Non-Callable Maturity: 6/1/2029, Coupon 5.00%. Priced at 114.486; YTM 2.749%.
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