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An investor purchases a 30-year municipal bond for $960. The bond's coupon rate is 8 percent and, it still had 16 years remaining until maturity.

  1. 11.  An investor purchases a 30-year municipal bond for $960. The bond's coupon rate is 8 percent and, it still had 16 years remaining until maturity. If the investor holds the bond until it matures and collects the $1000 par value from the municipality and his marginal tax rate is 34 percent, what will be his (effective) yield to maturity? (5 points)

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