Question 3

Assume you are in the 20 percent tax bracket and purchase a 5.0 percent municipal bond.

Calculate the taxable equivalent yield for this investment.

Convert your answer to a percent, then round to 2 decimal places (i.e. 1.25 2.44, 0.09, 12.44).

Do not include the "%" sign in your response.

Question 4

Assume that three years ago you purchased a corporate bond that pays 6.0 percent. The purchase price was $1110.

What is the annual dollar amount of interest that you receive from your bond investment?

(Round your answer to the nearest whole dollar amount. Do not include the comma, period, and "$" sign in your response.)

Question 5

Determine the current yield on a corporate bond investment that has a face value of $1180, pays 6 percent, and has a current price of $1220.

Convert your answer to a percent, then round to 1 decimal place (i.e. 1.3 2.4). Do not include the "%" sign in your response.