Taxable equivalent yield and zero coupon bond price

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Reference no: EM131302219

1. Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 8 years if the market interest rate is 9.50 percent. (Round your answer to 2 decimal places.)

2. Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.3 percent for an investor in the 15 percent marginal tax bracket? (Round your answer to 2 decimal places.)

Reference no: EM131302219

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