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XYZ Corp. has 6.8% semiannual-pay bonds outstanding that mature 10 years from today and have a market value of $1,077.36. What is the current yield

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XYZ Corp. has 6.8% semiannual-pay bonds outstanding that mature 10 years from today and have a market value of $1,077.36. What is the current yield on these bonds? Assume the bonds have a par value of $1,000 Select one: a. 3.2% b. 6.8% c. 5.8% d. 7.1% e. 6.3% An investor with a 30% marginal tax rate is considering the purchase of a taxable corporate bond with an AA rating. A similar municipal bond with an AA rating has a YTM of 7.2%. What pre-tax YTM would the taxable corporate bond need to offer to provide the same after-tax YTM as the municipal bond? Select one: a. 5.0% b. 14.3% c. 10.3% d.7.2% e. 8.6%

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