A U.S. Treasury bond pays 2.80 percent interest. You are in the 27 percent marginal tax bracket. What is your after- tax yield on this bond?

A municipal bond has a coupon rate of 5.83 percent and ytm of 5.53 percent.  If an investor has a marginal tax rate of 28 percent. What is the equivalent pretax yield on a taxable bond?

3. The after tax yield on a bond is (1- tax rate) x yield. Suppose that someone has a tax rate of 25%, that the interest rate on a bond with taxable interest is 5%, and the the interest rate on a bond whose interest is not taxable is 4%. Show that other things the same that this person gets a higher after tax yield by holing the second bond.

For tax purposes, the implicit annual interest for any one year on a zero coupon bond is equal to Multiple Choice zero. the current yield. the face value minus the current market value. the face value multiplied by the current market rate of interest. the annual change in the bond's value as determined by amortizing the loan.

1. A municipal bond has a coupon rate of 5.83 percent and a YTM of 5.53 percent. If an investor has a marginal tax rate of 28 percent, what is the equivalent pretax yield on a taxable bond? IF RELEVANT SHOW CALCULATOR STEPS

You bought Japanese government bond yesterday by paying 600,000 yen.  The bond offers you 24,000 yen in year 1, 24,000 yen in year 2 and 624,000 yen in year 3. (1)   How much is the internal rate of return (interest rate) of this bond?  Answer should be in percentage. Write an answer like one of the examples.  <Example>  2 or 2.0          Answer %   (2)   If the market interest rate goes up today, which of the following three explanations is correct? You can sell the bond today only below 600,000 yen. You can sell the bond today at 600,000 yen. You can sell the bond today above 600,000 yen.      (3)   If Mr. X buys your bond at 603,000 yen from you, how much is the internal rate of return (IRR) for Mr. X? IRR is the same as the answer of (1) in the above. IRR is below the answer of (1) in the above. IRR is above the answer of (1) in the above.

The yield on two-year government bonds is 4.5%, and one-year government bonds provide a yield of 3%. In addition, the real risk-free interest rate (r*) is 1%, and the maturity risk premium is 0. 1) According to the theory of expectation, what is the rate of return on annual government bonds from now to later? Calculate the rate of return using the geometric mean. 2) What are the expected inflation rates for the first and second years respectively?

which of the following bonds would you expect to have the highest yield? 1. 10-year US treasury bond 2. 1-year US treasury bond 3. 10-year corporate bond 4. 5-year municipal bond 5. 5-year US treasury bond

In which of the following situations would you prefer to be borrowing? Group of answer choices The interest rate is 13 percent and the expected inflation rate is 15 percent. The interest rate is 4 percent and the expected inflation rate is 1 percent. The interest rate is 25 percent and the expected inflation rate is 50 percent. The interest rate is 9 percent and the expected inflation rate is 7 percent.

The outstanding bonds of Winter Tires Inc. provide a real rate of return of 3.2 percent. If the current rate of inflation is 2.1 percent, what is the actual nominal rate of return on these bonds?