A 3.00 percent coupon municipal bond has 14 years left to maturity and has a price quote of 97.45. 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. (Round your answer to 2 decimal places.)
Current yield %
Compute the yield to maturity. (Round your answer to 2 decimal places.)
Yield to maturity %
Compute the taxable equivalent yield (for an investor in the 36 percent marginal tax bracket). (Round your answer to 2 decimal places.)
Equivalent taxable yield %
Compute the yield to call. (Round your answer to 2 decimal places.)
Yield to call %