Compute the bond current yield

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1. A 3.10 percent coupon municipal bond has 15 years left to maturity and has a price quote of 96.45. The bond can be called in four years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.)

a. Compute the bond's current yield. (Round your answer to 2 decimal places.)

b. Compute the yield to maturity. (Round your answer to 2 decimal places.)

c. Compute the taxable equivalent yield (for an investor in the 30 percent marginal tax bracket). (Round your answer to 2 decimal places.)

d. Compute the yield to call. (Round your answer to 2 decimal places.)

Reference no: EM131419638

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