sharakayallen77661 sharakayallen77661

28-10-2020
Business

contestada

A taxable bond has a coupon rate of 5.98 percent and a YTM of 5.63 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent aftertax yield

Respuesta :

Tundexi Tundexi

29-10-2020

Answer:

3.941%

Explanation:

Equivalent after tax yield = Yield to maturity*(1-tax rate)

Equivalent after tax yield = 5.63 *(1 - 30%)

Equivalent after tax yield = 5.63 *(1 - 0.30)

Equivalent after tax yield = 5.63*(0.70)

Equivalent after tax yield = 3.941%

Answer Link

Otras preguntas

factorise the polynomial a square minus b square whole cube plus b square minus c square whole cube plus c square minus a square whole cube

The term that defines an arrangement in which an investment manager receives research or brokerage services in exchange for placing orders through that broker-d

Which of the following is true of domain-specific information processors (select all that are correct)? a) They are optimized for specific tasks. b) They functi

Leslie has 25 cents in her pocket but does not have a quarter. If you can tell her all possible combinations of coins she could have that add up to 25 cents, sh

A bearing shell has a slightly larger arc than the bearing housing. This difference is called _________. A) Bearing crush B) Bearing tang C) Bearing spread D) B

How far does a baseball that is thrown horizontally at 42.5 m/s drop over a horizontal distance of 18.4 m?

Which of the following is a mineral? a) teeth b) oyster shell (CaCO₃) c) sugar (C₆H1₁₂₆) d) glass

Identify the following as a simile or a metaphor. framton grabbed wildly at his stick and hat; the hall-door, the gravel-drive, and the front gate were dimly-no

_________ control conditions might be used as a variation of the reversal design when it is not possible or when it is deemed inappropriate to completely elimin

Fixed cost = $600k/year, selling price = $14/unit, variable cost = $6/unit.a) Break-even quantityb) Profit at 50k units/yearc) At what quantity, profit is $550k