Question: A 4.20 percent coupon municipal bond has 14 years left to maturity and has a price quote of 97.55. The bond can be called in four 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.
Compute the yield to maturity.
Compute the taxable equivalent yield (for an investor in the 36 percent marginal tax bracket).
Compute the yield to call.