Fill out the table below. $(80$ points$)$

The first three columns are inputs. $P$ and $CR$ are, respectively, the price and coupon rate of an annual $1\mathrm{.}5-$year

coupon bond. TR is the marginal tax rate. The face value is $$1,000.$

The last four columns are outputs. yp is the pretax yield. ya is the after$-$tax yield implied by the potentially$-$flawed

formula. ya$\text{'}$ is the after$-$tax yield assuming capital gains are only taxed at maturity and coupon payments are taxed

normally. ya$"$ is the after$-$tax yield assuming capital gains are only taxed at maturity and coupon payments are tax$-$

exempt.

I have already filled out the first row; it is the example we worked through in class. The goal for this exercise is to

see how these yields change as the inputs change.