Please answer question 2 1 The Los Angeles Department of Water and Power has issued an interesting bond which carries a low interest rate, but, when bought at par, is retired with successively higher call premia, depending on year of call Therefore, the $275 million issue is subject to the following refunding schedule, with call price quoted as of par (bond call date occurring on July 1 of the year, except 2026 call which occurs on January 1 of 2026) 2020 2021 2022 2023 2024 2025 2026 Coupon 0 86 0 98 1 10 1 22 1 33 1 47 1 62 Int Rate 5 00 5 00 5 00 5 00 5 00 5 00 5 00 Call Price 116 708 120 012 123 007 125 689 128 146 130 014 129 985 What is tax equivalent yield of these bonds, assuming a marginal tax rate of 31 65 What is the modified duration of these bonds, assuming you bought it today at par You are looking at an American Express Co bond maturing on May 20, 2026 (Rated Moodys A3, S P A ) It has a coupon rate of 3 125 and is priced 111 42 bid, 113 02 ask (percent of par) What is this bonds YTM Meanwhile, you are comparing this bond to the maturity comparable LADWP bond (either the 2025 or the 2026), and your marginal tax rate is 28 5 If you are only concerned about yield, which bond do you buy, the AMEX bond, or the LADWP muni The State of California issued several different highway development bonds, which were then sold as principal strips and coupon strips If the coupon strip issue maturing October 15, 202 is now priced at 65 94 bid, 67 89 ask, what is its tax equivalent yield if it matures at par and your marginal tax rate is 28 5 The San Ramon Valley California Unified School District issued 10 year notes with a coupon of 5 With a maturity of August 31, 2024, what is tax equivalent yield of these bonds if it was last quoted at 108 57, assuming your marginal tax rate of 35 93

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Please answer question 2 1.The Los Angeles Department of Water and Power has issued an interesting bond which carries a low interest rate, but, when

Please answer question 2

1.The Los Angeles Department of Water and Power has issued an interesting bond which carries a low interest rate, but, when bought at par, is retired with successively higher call premia, depending on year of call. Therefore, the $275 million issue is subject to the following refunding schedule, with call price quoted as % of par (bond call date occurring on July 1 of the year, except 2026 call which occurs on January 1 of 2026):

	2020	2021	2022	2023	2024	2025	2026
Coupon	0.86%	0.98%	1.10%	1.22%	1.33%	1.47%	1.62%
Int Rate	5.00%	5.00%	5.00%	5.00%	5.00%	5.00%	5.00%
Call Price	116.708	120.012	123.007	125.689	128.146	130.014	129.985

What is tax-equivalent yield of these bonds, assuming a marginal tax rate of 31.65%?

What is the modified duration of these bonds, assuming you bought it today at par?

You are looking at an American Express Co. bond maturing on May 20, 2026 (Rated Moodys A3, S & P A-). It has a coupon rate of 3.125 % and is priced 111.42 bid, 113.02 ask (percent of par). What is this bonds YTM? Meanwhile, you are comparing this bond to the maturity-comparable LADWP bond (either the 2025 or the 2026), and your marginal tax rate is 28.5%. If you are only concerned about yield, which bond do you buy, the AMEX bond, or the LADWP muni?

The State of California issued several different highway development bonds, which were then sold as principal strips and coupon strips. If the coupon strip issue maturing October 15, 202 is now priced at 65.94 bid, 67.89 ask, what is its tax-equivalent yield if it matures at par and your marginal tax rate is 28.5%?

The San Ramon Valley California Unified School District issued 10-year notes with a coupon of 5%. With a maturity of August 31, 2024, what is tax-equivalent yield of these bonds if it was last quoted at 108.57, assuming your marginal tax rate of 35.93%?