A corporate bond pays six percent interest

Assignment Help Financial Management

Reference no: EM13885039

A corporate bond pays 6 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after-tax basis if you are in the 15 percent tax bracket?

o 3.96 percent

o 4.28 percent

o 5.10 percent

o 9.75 percent

o 11.47 percent

Reference no: EM13885039

Questions Cloud

Southgate net credit : Southgate company has current assets of 3 million of which 750000 are account receivable. its current liabilities total 2 million of which 500000 are accounts payable and 100000 are wages payable. Southgate net credit is: How much would you pay for a..

Future value-make single investment : (Future Value) Sarah Wiggum would like to make a single investment and have $2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? What if Sarah w..

Forecast are often related to sales because : Which of the following is not a source of a short term debt? An example of systematic risk is when the company's value decline to. Forecast are often related to sales because

Required return exceed farleys required return : Bradford Manufacturing Company has a beta of 1.3, while Farley Industries has a beta of 0.85. The required return on an index fund that holds the entire stock market is 10.5%. The risk-free rate of interest is 6.5%. By how much does Bradford's requir..

A corporate bond pays six percent interest : A corporate bond pays 6 percent interest. How much would a municipal bond have to pay to be equivalent to this on an after-tax basis if you are in the 15 percent tax bracket?

The wall street journal as selling at ask price : Suppose that today’s date is April 15. A bond with a 10% coupon paid semiannually every January 15 and July 15 is listed in The Wall Street Journal as selling at an ask price of 101:04.If you buy the bond from a dealer today, what price will you pay ..

Bond with coupon rate-what is invoice price of the bond : A bond with a coupon rate of 6% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal reports the ask price for the bond on January 30 at 100:03. What is the invoice price of the bond? The coupon period has ..

What is the horizon or terminal value : Hart Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 15% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 19%. What is the horizon or terminal value?

New range of candies which contain anti-oxidants : CathFoods will release a new range of candies which contain anti-oxidants. New equipment to manufacture the candy will cost $2 million, which will be depreciated by straight-line depreciation over five years. It is expected that the range of candies ..

User Account

All Pages