HELP NEEDED WITH PART e and f please
You are an investor who just bought three newly issued bonds. These bonds have the same credit quality and 10 years to maturity. The following table summarizes the characteristics of your portfolio.
All three bonds pay coupons annually and are currently priced to yield 5% per annum. Your tax bracket is 30% on ordinary income and 20% on capital gains.
you liquidate your portfolio, what is your rate of return on each bond before taxes? What is your after-tax rate of return on each bond? Repeat these calculations for yields to maturity of 4.5% and 5.5%. [9 marks]