Question: can somebody please help me answer this question. thank you so much 5. Consider a municipal bond issued by the state of Massachusetts. It is

can somebody please help me answer this question. thank you so much

5. Consider a municipal bond issued by the state of Massachusetts. It is an 8-year bond with a coupon rate of 6% paid semi-annually. The bond is rated AA. Spalding is an AA rated firm, and it also has an 8-year bond with a coupon rate of 6% paid semi-annually. The marginal tax for investors in the bond market is 40%. Suppose the annual yield to maturity of Spalding's bond is 6%. What is likely to be the price of both bonds (State of Massachusetts and Spalding) 5. Consider a municipal bond issued by the state of Massachusetts. It is an 8-year bond with a coupon rate of 6% paid semi-annually. The bond is rated AA. Spalding is an AA rated firm, and it also has an 8-year bond with a coupon rate of 6% paid semi-annually. The marginal tax for investors in the bond market is 40%. Suppose the annual yield to maturity of Spalding's bond is 6%. What is likely to be the price of both bonds (State of Massachusetts and Spalding)

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