A. The 6 percent, semi-annual bonds issued by Black Water Mills mature in 9 years and have a face value of $1,400. What is the current value of one of these bonds if the market rate of return is 10.3 percent?
B. An 9.10 percent, semi-annual coupon bond has a face value of $2,100 and a current market value of $3,230. What is the current yield?
C. A bond has a face value of $1,000, an 10.4 percent, semi-annual coupon, and a market price of $1,108.12. How many years will it be until this bond matures if the yield-to-maturity is 9.3 percent?
D. A municipal bond yields 6 percent. What is the taxable-equivalent yield for an individual who has a 38 percent marginal tax rate?