Need D & E

A newly issued bond pays its coupons once annually. Its coupon rate is 8.5%, its maturity is 20 years, and its yield to maturity is 10.5% a. Find the holding period return for a 1-year investment period if the bond is selling at a yield to maturity of 9.5% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding period retum 19,52% b. If you sell the bond after one year, 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 tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.) $ Tax an interest income Tax on capital gain Total taxes $ 35.08 22.62 57.70 $ c. What is the after-tax holding period return on the bond? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) After-tax holding period retum 1261% d. Find the realized compound yield before taxes for a 2-year holding period, assuming that (1) you sell the bond after two years, (2) the bond yield is 9.5% at the end of the second year, and (3) the coupon can be reinvested for one year at a 3% interest rate. (Do not round intermediate calculations, Round your answer to 2 decimal places) Realized compound yield before taxes d. Find the realized compound yield before taxes for a 2-year holding period, assuming that (1) you sell the bond after two years, (2) the bond yield is 9.5% at the end of the second year, and (3) the coupon can be reinvested for one year at a 3% interest rate. (Do not round intermediate calculations. Round your answer to 2 decimal places Realed compound yold before taxes % e. Use the tax rates in (b) above to compute the after-tax 2-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 2-year realized compound yield