what is the equIvalent yield on the taxable bond?

Q: The interest rate on a taxable bond is 4%. If your personal tax rate is 25%, what interest rate on a…

A: Interest rate on a taxable bond = 4% Personal tax rate = 25%

Q: You can invest in taxable bonds that are paying a yield of 9.50 percent or a municipal bond paying a…

A: A security bond is a legally enforceable promise to pay the government if you or your employee…

Q: Assume that you purchased a $10,000 corporate bond. The interest rate is 7.00 percent. What is the…

A: Bond purchased amount (FV) = $10,000Interest rate = 7.00%

Q: Municipal bonds are yielding 4.4 percent if they are insured and 4.7 percent if they are uninsured.…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: An investor purchases a 30-year U.S. government bond for $1,020. The bond's coupon rate is 9…

A: Given information: Present value of bond is $1,020 Par value of bond is $1,000 Coupon rate is 9%…

Q: You manage a pension fund that will provide retired workers with lifetime annuities. You determine…

A: Bonds are used to finance projects and operations by corporations, cities, states, and sovereign…

Q: A corporate bond pays 9.75% interest. You are in the 29 percent tax bracket. What is your after-tax…

A: In this question we need to compute the after tax yield on the bond. Yield on bond = 9.75% Tax rate…

Q: Suppose you invest in a municipal bond that pays a yield of 149%. If your marginal tax is 15%, what…

A: A municipal bond is a government debt security issued to raise long-term debt funds. The yield…

Q: An investor purchases a 30-year U.S. municipal bond for $840. The bond’s coupon rate is 10 percent…

A: We know all the cash flows associated with the bond along with the timing. We need to find the…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A:

Q: A bond issued by the New York state is priced to yield 6.30 % . If you are in the 25 % tax bracket…

A: Bonds are a kind of debt financial instrument which is a fixed-income investment vehicle that…

Q: A (general obligation) muni bond pays 7% interest. A Treasury bond pays 6.5% interest. Which bond…

A: When deciding between a municipal bond (muni bond) and a Treasury bond based on their interest…

Q: For tax purposes, the implicit annual interest for any one year on a zero coupon bond is equal to…

A: A zero-coupon bond is a bond that does not pay interest on an annual or periodic basis. It is the…

Q: bond

A: 1) To calculate which bond is more beneficial we have to calculate the YTM. Formula for YTM is: YTM…

Q: A corporation issues a bond that promises to pay you monthly coupons in the amount of $ 77.5 per…

A: Bond price refers to the market value at which a bond is traded. It represents the present value of…

Q: Question 15 A corporate bond pays 8.7 percent interest. You are in the 30 percent tax bracket. What…

A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…

Q: b) You can invest in taxable bonds that are paying a yield of 9.50% or a municipal bond paying a…

A: A security bond is a legally enforceable promise to pay the government if you or your employee…

Q: A 10-year corporate bond has an annual coupon of 9 percent ($45 paid semi-annually) and a price of…

A: bonds can offer a range of benefits for investors looking for a stable source of income and a way to…

Q: Taxable Equivalent Yield What's the taxable equivalent yield on a municipal bond with a yield to…

A: Tax-free Yield = 10.00% = 0.10Tax Rate = 35% =  0.35

Q: A municipal bond you are considering as an investment currently pays a yield of 6.86 percent. a.…

A: The tax-equivalent yield is the rate of return necessary for a taxable bond to match the yield of a…

Q: Kelly Phillips, an investor who resides in Livingston NJ, has a marginal tax rate of 28%. If a NJ…

A: Yield to maturity = 5.53%  Marginal Tax = 28%

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Bonds are obligation securities issued by governments, districts, or enterprises to raise capital…

Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A:

Q: Hui is currently considering investing in municipal bonds that earn 7.50 percent interest, Company…

A: Municipal bonds are tax free that means no taxes are to be paid on the interest income but corporate…

Q: An LGU bond offers a yield of 8.5%. What rate should a corporation offer on its bond so investors…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: A 10-year corporate bond has an annual coupon of 9 percent ($45 paid semi-annually) and a price of…

A: A bond refers to an instrument that is used to raise debt capital for the issuing organization from…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Here, Particulars Values Par value  $10,000.00 Present value (PV)  $9,500.00 Coupon rate…

Q: 1. A municipal bond has a coupon rate of 5.83 percent and a YTM of 5.53 percent. If an investor has…

A: The yield at which a pretax bond is equal to a tax-free bond is equivalent to a pretax yield. This…

Q: You are considering a savings bond that will pay $100 in 8 years. If the interest rate is 2.2%, what…

A: The objective of this question is to find out the present value of a savings bond that will pay $100…

Q: An investor is comparing the following two bonds: a bond from ABC Corp which pays an interest rate…

A: Municipal bonds are tax free interest bonds. Therefore, no tax will be levied on interest…

Q: What is the tax exempt equivalent yield on a 8% bond yield given a marginal tax rate of 25%? O 6.00%…

A: Tax-exempt yield can be referred to as the yield on the security that an investor may enjoy after…

Q: tax-free municipal bond provides a yield of 4.3%. What is the equivalent taxable bond given a 35%…

A: The bond are the type of investment that provides fixed return to the bond holders as a result of…

Q: A bond issued by the Irbid Municipal is priced to yield 7.80%. If you are in the 15% tax bracket his…

A: Tax Equivalent Yield = Tax free municipal yield / (1 -tax rate)

Q: Suppose a state of California bond will pay $1,000 eight years from now. If the going interest rate…

A: Maturity price (FV) = $ 1000 Period (t) = 8  Years Annual interest rate (r) = 6.4%

Q: A municipal bond has a coupon rate of 5.83 percent and ytm of 5.53 percent.  If an investor has a…

A: Solution:- Equivalent pretax yield on a taxable bond means the yield on taxable bond at which its…

Q: What is the taxable equivalent yield on a municipal bond with a yield to maturity of 4 percent for…

A: In this question we need to compute the taxable equivalent yield on a municipal bond.

Q: If a 5 yr. AA- General Dynamics note is yielding a 35% tax bracket investor 7.56125% while a…

A: Tax equivalent yield is used to determine the yield from a municipal bond or a note.

Q: asury with a yield of 5.99% -state municipal bond with a yield of 4.46% in the 32% federal tax…

A: Municipal bonds are used by government to raise money from market and these bonds are tax exempted…

Q: ultiple Choice 5.56 percent 3.87 percent

A: In this we have to find out the taxable equivalent interest rate.

Q: To find the after-tax interest rate, the before tax interest rate is multiplied by _-- If the…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: Currently, a three-year Treasury note pays 10.0%. Assuming that your tax rate is 15%, what is the…

A: For tax free municipal bond, interest rate should be equal to the after tax interest rate of…

Q: 3. The after tax yield on a bond is (1- tax rate) x yield. Suppose that someone has a tax rate of…

A: After Tax Yield of bond with Taxable Interest = (1 - 0.25)*5%…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Present value of all the expected cash flows as coupon and par value is the bond price. Cash flows…

Q: If the promised payment for a bond is 110 dollars and the interest rate is 5% what is the bond price

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it…

A: Default rates on municipal bonds have been comparatively lower than those on corporate debts. This…