Compute the yield to call percentage

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Reference no: EM13917481

A 4.00 percent coupon municipal bond has 12 years left to maturity and has a price quote of 106.80. The bond can be called in eight years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.)

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

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

Compute the taxable equivalent yield percentage (for an investor in the 35 percent marginal tax bracket).

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

Reference no: EM13917481

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