Answer:
- After-Tax return on Municipal Bond = 7%
 - After-Tax Return on Corporate Bond = 6.72%
 
Explanation:
The main advantage that Municipal Bonds usually carry with them is that they are tax-exempt. As no taxes are paid on them, there is no need to calculate an after-tax return because it is the same as a pre-tax return.
After-Tax return on Municipal Bond = 7%
The Corporate Bond is subject to tax based on the holder's tax bracket. 
After-Tax Return on Corporate Bond = 8.4 % * ( 1 - 20%)
After-Tax Return on Corporate Bond = 6.72%
<em>Considering taxes, the Municipal Bond is better. </em>
 
        
             
        
        
        
Answer:
6.67% and 6.694%
Explanation:
The computation of the approximate yield to maturity and the exact yield to maturity is shown below:
For Approximate yield to maturity it is 
= 2 × ((Face value - current price) ÷ (2 × time period) + face value × coupon rate ÷ 2) ÷ (Face value + current price) ÷ 2)
=2 × (($1,000 - $950) ÷ (2 × 10) + $1,000 × 6% ÷ 2) ÷ (($1,000 + $950) ÷ 2)
= 6.67%
Now 
the Exact yield to maturity is
= RATE(NPER,PMT,-PV,FV) 
= RATE (10 × 2, 6% × $1000 ÷ 2,-$950,$1,000) × 2
= 6.694%
 
        
             
        
        
        
Answer:
Present Value= $1,772.115
Explanation:
Giving the following information:
You have won the $3 million first prize in the Centennial Lottery. 
However, the prize will be awarded on your 100th birthday, 78 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent.
We need to use the following formula:
PV= FV/[(1+i)^n]
PV= present value
FV= final value
PV= 3000000/(1.10^78)= $1,772.115
 
        
             
        
        
        
Answer:
$663.5
Explanation:
given that
number of years remaining = 4 years
yield to maturity ratio = 10.8% = 1.108
Par value = $1000
Current yield takes a look at the current price of a bond, instead of looking at it from a face value. That being said, it can be calculated mathematically as 
Current yield = 1000 / 1.108^4
Current yield = 1000 / 1.507
Current yield = $663.5
Therefore, the current yield from the question we are given, is found to be $663.5.
I hope that helps