A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a 7.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.9 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.50 percent yield to maturity and a similar-risk corporate bond that offers a 7.45 percent yield.
Determine the equivalent taxable yield. (Round your answer to 2 decimal places.)
Equivalent taxable yield %
Which bond will give the client more profit after taxes?