A 390 percent coupon municipal bond has 15 years left to


A 3.90 percent coupon municipal bond has 15 years left to maturity and has a price quote of 104.40. The bond can be called in eight 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 30 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 %

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Financial Management: A 390 percent coupon municipal bond has 15 years left to
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