What will be the expected price change in the bond

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Reference no: EM132002041

1. A municipal bond is yielding 4.8%. If you have a marginal tax rate of 24%, what is the equivalent taxable yield?

2. A bond has a Macaulay duration of 6.25 years. What will be the expected price change in the bond if the YTM increases from 6 to 6.4%?

3. How is a convertible bond different from a package of a straight bond and a warrant? Describe three ways in which the two types of financial instruments differ.

Reference no: EM132002041

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