Compute the bonds current yield

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A 4.85 percent coupon municipal bond has 22 years left to maturity and has a price quote of 103.70. The bond can be called in eight years. The call premium is one year of coupon payments. (Assume interest payments are semi annual and a par value of $5,000.)

Compute the bond’s current yield

Compute the Yield to Maturity

Compute the taxable equivalent yield for an investor in the 35% marginal tax bracket

Compute the yield to call.

Reference no: EM13870776

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