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A 10-year municipal bond has a coupon rate of 4.5% and just sold today for 104.56. It matures on December 1, 2023. What is its tax - equivalent yield? Assume a I marginal tax rate of 40% and interest is paid June 1 and December 1. (Do not use the % sign with your answer) ANSWER WITH EXCEL

A 10-year municipal bond has a coupon rate of 4.5% and just sold today for 104.56. It matures on December 1, 2023. What is its tax - equivalent yield? Assume a I marginal tax rate of 40% and interest is paid June 1 and December 1. (Do not use the % sign with your answer) ANSWER WITH EXCEL

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A 10-year municipal bond has a coupon rate of 4.5% and just sold today for 104.56. It matures on December 1, 2023. What is its tax - equivalent yield? Assume a I marginal tax rate of 40% and interest is paid June 1 and December 1. (Do not use the % sign with your answer) ANSWER WITH EXCEL
Transcribed Image Text:A 10-year municipal bond has a coupon rate of 4.5% and just sold today for 104.56. It matures on December 1, 2023. What is its tax - equivalent yield? Assume a I marginal tax rate of 40% and interest is paid June 1 and December 1. (Do not use the % sign with your answer) ANSWER WITH EXCEL
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