Consider the decision to purchase either a five$-$year corporate bond or a five$-$year municipal bond. The corporate bond is an $8\mathrm{.}5\%$ annual coupon bond with a par value of $$1,000$ and a yield to maturity of $9\mathrm{.}0\%.$ The municipal bond has an annual coupon of $6\mathrm{.}5\%,$ a par value of $$1,000,$ and a yield to maturity of $5\mathrm{.}75\%.$

What is the present value of the corporate bond $($in $s$)?$

What is the present value of the muni?

What is the after$-$tax yield $($in $\%$s$)$ of the corporate bond? Assume a tax rate of $40\%$

What is the after$-$tax yield of the municipal bond? Assume a tax rate of $40\%.$

Which is the better return for the investor on an after$-$tax basis? Please answer either corporate or municipal