A 3.60 percent coupon municipal bond has 14 years left to maturity and has a price...

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A 3.60 percent coupon municipal bond has 14 years left tomaturity and has a price quote of 95.45. The bond can be called infour 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. (Do not roundintermediate calculations. Round your answer to 2 decimal places.)Compute the yield to maturity. (Do not round intermediatecalculations. Round your answer to 2 decimal places.) Compute thetaxable equivalent yield (for an investor in the 36 percentmarginal tax bracket). (Do not round intermediate calculations.Round your answer to 2 decimal places.) Compute the yield to call.(Do not round intermediate calculations. Round your answer to 2decimal places.)

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Part 1 The bonds current yield is calculated as below Bonds Current Yield Annual Coupon PaymentCurrent Bond Price100 Here Annual Coupon Payment 5000360 180 and Current Bond Price 50009545 477250 Substituting values in the above formula we get Bonds Current Yield 180477250100 377 Part 2 The yield See Answer

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A 3.60 percent coupon municipal bond has 14 years left tomaturity and has a price quote of 95.45. The bond can be called infour 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. (Do not roundintermediate calculations. Round your answer to 2 decimal places.)Compute the yield to maturity. (Do not round intermediatecalculations. Round your answer to 2 decimal places.) Compute thetaxable equivalent yield (for an investor in the 36 percentmarginal tax bracket). (Do not round intermediate calculations.Round your answer to 2 decimal places.) Compute the yield to call.(Do not round intermediate calculations. Round your answer to 2decimal places.)