1. Calculate the price of a zero-coupon bond that matures in 12 years if the market interest rate is 6.05 percent. Assume semiannual compounding. 2. What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 4.1 percent for an investor in the 28 percent marginal tax bracket? 3. Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.) 4. A 4.70 percent coupon bond with 15 years left to maturity is offered for sale at $953.91. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) 5. A 5.10 percent coupon bond with 15 years left to maturity can be called in three years. The call premium is one year of coupon payments. It is offered for sale at $1,060.30. What is the yield to call of the bond? (Assume interest payments are semiannual.) (
1. Calculate the price of a zero-coupon bond that matures in 12 years if the market interest rate is 6.05 percent. Assume semiannual compounding.
2. What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 4.1 percent for an investor in the 28 percent marginal tax bracket?
3. Compute the price of a 5.9 percent coupon bond with 15 years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.)
4. A 4.70 percent coupon bond with 15 years left to maturity is offered for sale at $953.91. What yield to maturity is the bond offering? (Assume interest payments are semiannual.)
5. A 5.10 percent coupon bond with 15 years left to maturity can be called in three years. The call premium is one year of coupon payments. It is offered for sale at $1,060.30. What is the yield to call of the bond? (Assume interest payments are semiannual.) (
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