Question: The information will be used for the first five questions, You, as an investor, are comparing two bonds: a corporate and a municipal. They both

They both have a face value (par) of $1,000 and a 5-year

term to maturity. The corporate bond has an 8% annual coupon and

The information will be used for the first five questions, You, as an investor, are comparing two bonds: a corporate and a municipal. They both have a face value (par) of $1,000 and a 5-year term to maturity. The corporate bond has an 8% annual coupon and an 8.5% yield to maturity. The municipal bond has a 6% coupon and a 5.5% yield to maturity. Please calculate the price of the corporate bond. Assuming you have a 35% tax rate, what is the after-tax coupon payment that you will receive? What is your after-tax return on the corporate? What is the after-tax return on the municipal bond

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