A taxable corporate issue yields 63 percent for an investor


1. A taxable corporate issue yields 6.3 percent. For an investor in a tax bracket of 35 percent, what is the equivalent after tax yield?

2. A noncallable Treasury bond has a quoted yield of 4.78 percent. It has a 5.75 percent coupon and 13 years to maturity. What is its dollar price assuming a $1,000 par value? what is its quoted price?

3. A Treasury issue is quoted at 103.63865 bid and 103.695 ask. Assume a face value of $1,000. What is the least you could pay to acquire a bond?

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Financial Management: A taxable corporate issue yields 63 percent for an investor
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