Question: I need the right answer to the equivalent taxable yield and it is not 2.21.. A 2.60 percent coupon municipal bond has 10 years left
I need the right answer to the equivalent taxable yield and it is not 2.21.. A 2.60 percent coupon municipal bond has 10 years left to maturity and has a price quote of 95.25. The bond can be called in four years. The call premium is one year of coupon payment. (Assume interest payments are semiannual and a par value of $5,00.) Current yield; Yield to maturity; equivalent taxable yield; and Yield to call. I got all of right but can't get the equivalent taxable yield
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
