Snipping Tool Problem 10-44 A newly issued bond pays its coupons once a year. Its .pon rate is 5.7%, its maturity is 15 years, and its yield to maturity is 8.7% a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7.7% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return b. If you sell the bond after one year when its yield is 7.7%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original- issue discount (OID) tax nent. (Do not round intermediate calculations. Round your swers to 2 decimal places.) Tax on interest income Tax on capital gain Total taxes 5 c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) % After-tax holding period return d. Find the realized compound yield before taxes for a two-year holding period, assuming that you sell the bond after two years, (ii) the bond yield is 7.7% at the end of the second year, and (ii) the coupon can be reinvested for one year at a 3.7% interest rate. (Do not round intermediate calculations Round your answer to 2 decimal places.) Realized compound yield before taxes e. Use the tax rates in part(b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. (Do not round intermediate calculations. Round your answer to 2 decimal places.) After-tax two-year realized compound yield