A taxable bond has a coupon rate of 6.19 percent and a YTM of 5.77 percent. If an investor has a marginal tax rate of 38...
A taxable bond has a coupon rate of 6.19 percent and a YTM of 5.77 percent. If an investor has a marginal tax rate of 38 percent, what is the equivalent aftertax yield?
Homework Answers
| After tax rate = YTM * (1-Tax rate) |
| After tax rate = 5.77 * (1-0.38) |
| After tax rate = 3.58 |
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A taxable bond has a coupon rate of 6.19 percent and a YTM of 5.77 percent. If an investor has a marginal tax rate of 38...
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