Determine the equivalent taxable yield

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Reference no: EM132068929

1. A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.10 percent yield to maturity and a similar-risk corporate bond that offers a 7.25 percent yield.

2. Determine the equivalent taxable yield.

3. Compute the present value of a $4,100 deposit in year 2, and another $3,600 deposit at the end of year 5 using an 10 percent interest rate?

Reference no: EM132068929

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