Equivalent taxable yield is = (Bond yield/(1-Tax Rate)) |
Equivalent taxable yield is = (6.25%/(1-0.28) |
Equivalent taxable yield is = 8.68% |
A bond issued by the state of Alabama is priced to yield 6.25%. If you are...
A 3%, 20-year annual coupon bond issued by the Fairfax County is priced to yield 5%. If you are in the 28% tax bracket, this bond would provide you with an equivalent taxable yield of _____. A. 6.94% B. 4.17% C. 3.16% D. 5.61%
A 6.5% 10-year municipal bond is currently priced to yield 9.3%. For a taxpayer in the 33% marginal tax bracket, this bond would offer an equivalent taxable yield of A. 9.20% B. 10.75% C. 12.40% D. 13.88%
A bond issued by the State of Pennsylvania provides a 4.00% yield. What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax rate of return to an investor in the 35% tax bracket? a. 6.28% b. 6.22% c. 5.48% d. 6.15% e. 4.80%
What's the taxable equivalent yield on a municipal bond with a yield to maturity of 5.25 percent for an investor in the 25 percent marginal tax bracket? (Round your answer to 2 decimal places.) Multiple Choice 1.31% 21.00 % 5.25% 7.00%
Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with a yield to maturity of 6.00 percent for an investor in the 28 percent marginal tax bracket? (Round your answer to 2 decimal places.)
s Calculation (20%) Table 2.2 Tax-Exempt Yield Equivalent taxable yields corresponding to various tax-exempt yields 2% 3% 4% 5% 1% Marginal Tax Rate 125% 2.50% 3.75% 5.00% 6.25% 20% 30 1,43 2.86 4.29 5.71 7.14 40 1.67 3.33 5.00 6.67 8.33 50 2.00 4.00 6.00 8.00 10.00 Suppose your tax bracket is 40%, would you rather hold a 7% taxable bond or a % tax-free bond? What is the equivalent taxable yield of the 5%tax-free yield? s Calculation (20%) Table...
What is the bond equivalent yield of a bond if it has 200 days to maturity, a par value of $10000, and is currently trading at $9780? Enter your answer as a decimal, rounded to 4 decimal places. Your Answer: Answer Question 4 (1 point) suppose that short-term municipal bonds currently offer yields of 4%, while comparable taxable bonds pay 5%, which gives you the higher after-tax yield if your tax bracket is 30%? Municipal bonds Taxable bonds Question 5...
What is the taxable-equivalent yield (TEY) on a municipal bond with a 4.50% coupon, if you are in the 35% tax bracket
Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with a yield to maturity of 7.50 percent for an investor in the 15 percent marginal tax bracket? (Round your answer to 2 decimal places.)
Q4: What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.25 % for an investor in the 28% marginal tax bracket? (3 Points) Q5: A 5.25% coupon bond with 14 years left to maturity one year of coupon payments. It is offered for sale at $1,075.50. What is the yield to call (YTC) of the bond? (3 points) can be called in 4 years. The call premium is