Par value is 1000 1) A 100-year corporate bond has a coupon rate of 10% with semi-annual...

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Par value is 1000
1) A 100-year corporate bond has a coupon rate of 10% withsemi-annual payments. If the current value of the bond in themarketplace is $400, then what is the Yield-to-Maturity (YTM)?
2) How much do you pay for a zero coupon government bond thathas a term of 30 years, an interest rate of 10%, and a par value of$1000.
3) A taxable bond has a yield of 10% and a municipal bond has ayield of 4.6%. If you are in a 23% tax bracket, which bond do youprefer?
4) A taxable bond has a yield of 8% and a municipal bond has ayield of 10%. If you are in a 23% tax bracket, which bond do youprefer?

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1 Par Value 1000Market price of bond 400Coupon rate 10 with semi annual paymentsYTM Yield to maturity is the discount rate at which the See Answer

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Par value is 10001) A 100-year corporate bond has a coupon rate of 10% withsemi-annual payments. If the current value of the bond in themarketplace is $400, then what is the Yield-to-Maturity (YTM)?2) How much do you pay for a zero coupon government bond thathas a term of 30 years, an interest rate of 10%, and a par value of$1000.3) A taxable bond has a yield of 10% and a municipal bond has ayield of 4.6%. If you are in a 23% tax bracket, which bond do youprefer?4) A taxable bond has a yield of 8% and a municipal bond has ayield of 10%. If you are in a 23% tax bracket, which bond do youprefer?