Question 202 pts

The state of California issued a 10 year bond with a coupon rate of 5.20%. Professor is in the 30% tax bracket. What is the taxable equivalent of the 5.2% for the Professor?

Group of answer choices

17.33%

7.43%

3.64%

4.5

Question 232 pts

Tall But Happy Bond is a 10 percent coupon bond and matures in 11 years, makes semiannual payments, and has a yield-to-maturity of 7 percent. If interest rates suddenly rise by 2 percent, what will be the percentage change in the price of Tall But Happy Bond?

Group of answer choices

-13.56 percent

-14.87 percent

-12.92 percent

-15.16 percen