Question: You consider all other factors the same. The first bond is a corporate bond that matures in 5 years, pays a 10% semi-annual coupon, has

You consider all other factors the same. The first bond is a corporate bond that matures in 5 years, pays a 10% semi-annual coupon, has a face value of $10,000, and trades at a YTM of 9.5%. The second is a municipal that matures in 5 years, pays a 6% semi-annual coupon, has a face value of $10,000, and trades at a YTM of 5.8%. Assume a 50% tax rate What is the price of the Municipal bond? Calculate a single after-tax coupon payment on the corporate? What is the after-tax YTM on the corporate? What is the after-tax YTM on the muni bond?

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