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Question 1 A U.S. Treasury bond pays 12 percent interest. You are in the 0...

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Question

Finance

Question 1

A U.S. Treasury bond pays 12 percent interest. You are in the 0 percent tax bracket. What is your after-tax yield on this bond?

%

Question 2

If you face a 0% marginal tax rate, what is your after-tax return on each of the following bonds?

A 5.4% coupon semiannual corporate bond with 15 years to maturity, currently selling for $1,014. %

A 7.4% coupon semiannual corporate bond with 14 years to maturity, currently selling for $1,055.

%

A 6.4% coupon semiannual municipal bond with 10 years to maturity, currently selling for $1,112.

%

EXCEL Please

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