Please use the information shown below on the next five questions

Consider the decision to purchase either a five-year corporate bond or a five-year municipal bond. The corporate bond is a 7% annual coupon bond with a par value of $1,000 and a yield to maturity of 6.75%. The municipal bond has an annual coupon of 4.5%, par value of $1,000 and a yield to maturity of 5.25%.

What is the present value of the corporate bond?

What is the present value of the muni?

What is the after-tax yield of the corporate bond? Assume a tax rate of 38%

What is the after-tax yield of the municipal bond? Assume a tax rate of 38%

Which is the better return for the investor on an after-tax basis? Please answer either corporate or municipal