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Last year you bought a bond. Bond characteristics as of the time of bond purchase are given below. a) What was the bond price last

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Last year you bought a bond. Bond characteristics as of the time of bond purchase are given below. a) What was the bond price last year, when you bought it? What was the coupon yield? b) What are the current bond price and coupon yield if YTM did not change? c) What taxes would you pay after holding bond for a year? What is your after-tax cash flow? The tax rate is given below. 20 years Time to maturity Face Value Coupon Rate YTM Payments per year Personal tax rate $1,000 8.00% 4.00% 2 24.00% Last year you bought a bond. Bond characteristics as of the time of bond purchase are given below. a) What was the bond price last year, when you bought it? What was the coupon yield? b) What are the current bond price and coupon yield if YTM did not change? c) What taxes would you pay after holding bond for a year? What is your after-tax cash flow? The tax rate is given below. 20 years Time to maturity Face Value Coupon Rate YTM Payments per year Personal tax rate $1,000 8.00% 4.00% 2 24.00%

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