A 4.60 percent coupon municipal bond has 17 years left to maturity and has a price quote of 104.60. 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 taxable equivalent yield (for an investor in the 36 percent marginal tax bracket). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

A 4.60 percent coupon municipal bond has 17 years left to maturity and has a price quote of 104.60. 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 taxable equivalent yield (for an investor in the 36 percent marginal tax bracket). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 5P

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