The investor would prefer the municipal bond because the taxable-equivalent yield is greater than the yield on the corporate bond: 6.4%＞6.375%.

An investor has the following options available to them: They can buy a 10% semi annual coupon, 10 - year bond for $1000. The coupons can be reinvested at 12%. They estimate the bond will be sold in 3 years $1050. Based on this information, what would be the average annual rate of return over the 3 years（）

单项选择题Calculate the current yield and the Yield-to-first Call on a bond with the following characteristics: 5 years to maturity $1000 face value 8.75% semi-annual coupon Priced to yield 9.25% = Callable at $1025 in two years Current Yield Yield-to-Call（）①A. 8.93% 11.02% ②B. 9.83% 19.80% ③C. 12.67% 11.02%

A. ①
B. ②
C. ③

单项选择题Current spot rates are as follows: 1- Year: 6.5% 2 - Year: 7.0% 3 - Year: 9.2% Which of the following is TRUE（）

A. For a 3 - year annual pay coupon bond, all cash flows can be discounted at 9.2% to find the bond’s arbitrage-free value.
B. The yield to maturity for 3 - year annual pay coupon bond can be found by taking the arithmetic average of the 3 spot rates.
C. For a 3 - year annual pay coupon bond, the first coupon can be discounted at 6.5%, the second coupon can be discounted at 7.0% , and the third coupon plus maturity value can be discounted at 9.2% to find the bond’s arbitrage-free value.