A 525 coupon municipal bond has 16 years left to maturity


A 5.25% coupon municipal bond has 16 years left to maturity and has a price quote of 96.75. The bond can be called in 6 years. The call premium is one year of coupon payments. Compute the bond's current yield, yield to maturity, taxable equivalent yield (for an investor in the 40% marginal tax bracket), and yield to call. (Assume interest payments are paid semi annually and a par value of $5,000).

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Financial Management: A 525 coupon municipal bond has 16 years left to maturity
Reference No:- TGS01412984

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