Question 1 A U.S. Treasury bond pays 12 percent interest. You are in the 0...
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Finance
Question 1
A U.S. Treasury bond pays 12 percent interest. You are in the 0 percent tax bracket. What is your after-tax yield on this bond?
%
Question 2
If you face a 0% marginal tax rate, what is your after-tax return on each of the following bonds?
A 5.4% coupon semiannual corporate bond with 15 years to maturity, currently selling for $1,014. %
A 7.4% coupon semiannual corporate bond with 14 years to maturity, currently selling for $1,055.
%
A 6.4% coupon semiannual municipal bond with 10 years to maturity, currently selling for $1,112.
%
EXCEL Please
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