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% |
equivalent taxable yield=municipal bond yield/(1-tax rate)
=9.3/(1-0.33)
=13.88%(Approx).
A 6.5% 10-year municipal bond is currently priced to yield 9.3%. For a taxpayer in the...
(BONUS) Q11 - About a municipality bond a. Descibe it and write one advantage / one disadvantage of it. b. A 7% 10-year municipal bond is currently priced to yield 12%. For a taxpayer in the 25% marginal tax bracket, this bond would offer an equivalent taxable yield of. Explain the calculation steps.
question 4: 4. Suppose a 10-yr municipal bond currently offer the yield of 4%. What is the equivalent taxable yield if your tax bracket is 12%? Answer: Show your calculations here.
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A municipal bond carries a coupon rate of 7.00% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 35% tax bracket? (Round your answer to 2 decimal places.) Equivalent taxable yield %
A municipal bond carries a coupon rate of 7.00% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 35% tax bracket? (Round your answer to 2 decimal places.) Equivalent taxable yield