User Account

All Pages

Effect on the price of the municipal bond

Assignment Help Macroeconomics
Reference no: EM132507049

(a) If a municipal bond trading at par has a yield to maturity of 2.35% and the marginal rate is 39.6%, what is the equivalent taxable yield?

(b) If the marginal rate is increased to 55.0%, what is the equivalent taxable yield?

(c) Would you expect the increase in marginal tax rates to have an effect on the price of the municipal bond?

Reference no: EM132507049

Questions Cloud

What will happen to its wacc if the debt ratio : The tax rate is 21%. What will happen to its WACC if the debt ratio is increased to 40%? Show the appropriate calculations.
Discuss the conflict of interest and ethical issues : Discuss the conflict of interest and ethical issues you face in providing a response. How would you respond to the enquiry? Explain your response.
What is the depreciation expense in year 1 : Under MACRS, an asset which originally cost $200,000, incurred installation costs of $10,000, and has an estimated salvage value of $25,000
Find the total wages of the accounts receivable clerks : One full-time clerical worker is needed for every 750 accounts receivable. The total wages of the accounts receivable clerks is an example of a
Effect on the price of the municipal bond : Would you expect the increase in marginal tax rates to have an effect on the price of the municipal bond?
Discuss possible ramifications of these opposing objectives : Question - Discuss possible ramifications of these opposing objectives on the project. What would you do if you were the manager
Make the journal entry to record depletion during the year : How would you show the Northern Tier Mine, and its accumulated depletion, would appear in Salter Mining Company's balance sheet after the first year
Mortgage along with regular payment : If he pays this $60,000 toward his , by approximately how many years it takes him to pay off his mortgage?
Standard deviation of the fraction : If an insurance company has 10000 policies and each has 0.1 probability of making a claim what is the standard deviation of the fraction whice result in a claim

Reviews

Write a Review

Macroeconomics Questions & Answers

  Discuss the risks of introducing market mechanisms of supply

GB540: Economics for Global Decision Makers Assignment. Discuss the risks of introducing market mechanisms of supply and demand in situations

  Calculate the dividend yield and the capital-gains

Calculate the dividend yield, the capital-gains yield, and the total return to the stock. Express your calculation in percentage terms.

  Why do we have to unlock the documents before seeing them

Why do we have to unlock the documents before seeing them? I just unlocked one and it didn't even have all the information.

  Explain what type of market structure is the auto industry

Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.

  Why to insulate central bankers from political pressure

Provide an example of the Fed's actions listed in the textbook or from the October 30th FOMC press release. 4. If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the ..

  Actual and natural rates of unemployment

If potential output is higher than actual output, then the unemployment rate is: - Look at the figure Expected Inflation and the Short-Run Phillips Curve.- inflation will:

  Articulate a face-to-face conversation

Read the article titled, "Is social media ruining our kids' social skills?" Provide your opinion on the effect that texting and social media (i.e., Twitter, Snap Chat, Facebook, etc.) are having on individuals' abilities to articulate a face-to-fa..

  Economic growth

Identify at least four policies from the textbook that the government has created to impact economic growth and productivity.

  Quantity theory of money and the fisher relation

Suppose that in Korea the velocity of money is constant, real GDP grows by 6% per year each year, the money stock grows by 9% per year

  Enhance the operations of the database

Evaluate whether the use of a distributed DBMS structure is appropriate and identify the optimization techniques that should be factored in to enhance the operations of the database in your design.

  If the desired reserve ratio goes down and banks take money

If the desired reserve ratio goes down and banks take money out of reserve and put it into loans, doesn't that mean that the money multiplier comes into effect, affecting the money supply and also the total deposits?

  Elucidate which of the following theories of expectations

Elucidate which of the following theories of expectations holds that individuals usa all information available in forming expectations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd