Problem 6-10 After-Tax Rate of Return (LO2) You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. The bond pays interest annually. If your marginal tax rate is 30%, and 50% of capital gains are taxable, what is the after-tax rate of return on your bond investment? (Round your answer to the nearest whole percent.) After-tax rate of return % Problem 6-14 Bond Pricing (LO1, 2) A Metallico bond carries a coupon rate of 8%, payable semi-annually, has 9 years until maturity, and sells at a yield to maturity of 9%. a. What interest payments do bondholders receive each year? (Round your answer to the nearest whole dollar.) Total sum $ per year b. At what price does the bond sell? (Round your answer to 2 decimal places.) Bond's price $ c. What will happen to the bond price if the yield to maturity falls to 7%? (Round your answer to 2 decimal places.) New bond's price $ Problem 6-16 Bond Pricing (LO2) A 30-year maturity bond with $1,000 face value makes semi-annual coupon payments and has a coupon rate of 8%. (Round your answers to 4 decimal places.) a. What is the bond's yield to maturity if the bond is selling for $900? Bond's yield to maturity % b. What is the bond's yield to maturity if the bond is selling for $1000? Bond's yield to maturity % c. What is the bond's yield to maturity if the bond is selling for $1100? Bond's yield to maturity % Problem 6-4 Bond Pricing (LO1, 2) A 6-year Circular File bond pays interest of $80 annually and sells for $950. Par value is $1,000 by assumption. What is its coupon rate? (Round your answer to 2 decimal places.) Coupon rate % What is its current yield? (Round your answer to 2 decimal places.) Current yield % What is its yield to maturity? (Round your answer to 4 decimal places.) Yield to maturity % Problem 6-12 Accrued Interest (LO2) The quoted price of a bond with a coupon rate of 4.5%, payable semi-annually, maturing on March 1, 2023, is $990. The last coupon payment was made on March 1, 2019. If you buy the bond on July 1, 2019, what is the total price you must pay for the bond? (Do not round intermediate calculations. Round your answer to the nearest cent.) Total price of the bond $