Question: pls provide all work and dont do it on excel 44. A newly issued bond pays its coupons once a year. Its coupon raty is

pls provide all work and dont do it on excel pls provide all work and dont do it on excel 44. A

44. A newly issued bond pays its coupons once a year. Its coupon raty is 5%, its maturity is 20 years, and its yield to maturity is 8%. (LO 10-6) a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year. b. If you sell the bond after one year when its yield is 7%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30% ? The bond is subject to original-issue-discount (OID) tax treatment. c. What is the after-tax holding-period return on the bond? d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 7% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 3\% interest rate. e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules. 44. A newly issued bond pays its coupons once a year. Its coupon raty is 5%, its maturity is 20 years, and its yield to maturity is 8%. (LO 10-6) a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year. b. If you sell the bond after one year when its yield is 7%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30% ? The bond is subject to original-issue-discount (OID) tax treatment. c. What is the after-tax holding-period return on the bond? d. Find the realized compound yield before taxes for a two-year holding period, assuming that (i) you sell the bond after two years, (ii) the bond yield is 7% at the end of the second year, and (iii) the coupon can be reinvested for one year at a 3\% interest rate. e. Use the tax rates in part (b) to compute the after-tax two-year realized compound yield. Remember to take account of OID tax rules

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