Question: c . What is the after - tax holding - period return on the bond? ( Do not round intermediate calculations. Round your answer to
c What is the aftertax holdingperiod return on the bond? Do not round intermediate calculations. Round your answer to decimal places.
Aftertax holdingperiod return
d Find the realized compound yield before taxes for a twoyear holding period, assuming that i you sell the bond after two years, ii the bond yield is at the end of the second year, and iii the coupon can be reinvested for one year at a interest rate. Do not round intermediate calculations. Round your answer to decimal places.
Realized compound yield before taxes dotsdots.......
Use the tax rates in part b to compute the aftertax twoyear realized compound yield. Remember to take account of OID tax rules. Do not round intermediate calculations. Round your answer to decimal places.
Aftertax twoyear realized compound yield
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