Equivalent to a corporate bond paying

Assignment Help Finance Basics
Reference no: EM132285041

An investor is in the 28 percent federal tax bracket and pays a 9 percent state tax rate and 4 percent in local income taxes. For this investor a municipal bond paying 6 percent interest is equivalent to a corporate bond paying _____ interest.

Multiple Choice

  • 11.79 percent 
  • 10.17 percent 
  • 9.08 percent 
  • 9.68 percent 
  • 8.47 percent

Reference no: EM132285041

Questions Cloud

The role end-users typically play in incident reporting : There is no need to keep the memories of what happened by the emotional factors when there is no evidence of what really transpired.
What is meant in terms of a maximum loss : The portfolio of another business unit has a 99 percent weekly VaR of £4.25 million (stated using a confidence limit approach).
What are three advantages to using sql : What are three advantages to using SQL? By using an example, describe an advanced function of SQL.
What limitations or constraints are present : What limitations or constraints are present when implementing cryptography in systems?
Equivalent to a corporate bond paying : For this investor a municipal bond paying 6 percent interest is equivalent to a corporate bond paying _____ interest.
Summarizing the information in a creative notetaking style : Demonstrate your understanding of these concepts by summarizing the information in a creative notetaking style. Indicate the main topics, themes.
Calculate the price that plutarch corp : Calculate the price that Plutarch Corp. ordinary shares should be selling in the market.
Identify three hindrances to the critical-thinking process : Identify three hindrances to the critical-thinking process (as presented in The Art of Thinking). Determine methods for overcoming these hindrances.
What effect did printing press have on renaissance culture : Name at least 3 unique features of Durer's style? What did he learn from Italian art? What effect did the printing press have on Renaissance culture?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the difference between private equity investors

What is the difference between private equity investors and publicly traded stock investors?

  Calculate what you consider should be the market value of sh

Today is 30th June 2015. Justin Beamer Limited has distributable earnings of $6.00 per share. The company considers that it has a choice between: i) Distribute these earnings as dividends, in which case it will be able to maintain this annual dividen..

  Determine the equivalent units of production for material

The Cutting Department of Keigi Company has the following production and cost data for August. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Keigi Company uses the FIFO method to co..

  What is the yield on 2 year treasury securities

The real risk-free rate of interest is 3 percent. Inflation is expected to be 2 percent this year and 4 percent during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? What is the yield..

  The assignment is designed to test your understanding of

aimthe assignment is designed to test your understanding of corporate finance and explores a number of areas within the

  What is the current share price

Sea Side, Inc., just paid a dividend of $2.28 per share on its stock. The growth rate in dividends is expected to be a constant 3.3 percent per year.

  Self-assessing contribute toward compliance

How does monitoring your own work and self-assessing contribute toward compliance with legislation, work processes and the achievement KPIs?

  How much will be in the account after three years

If you deposit $1000 into an account at the end of each of the next three years and the account pays annual interest rate of 4%.

  Calculate the firm''s estimated free cash flow

Gambit Enterprises is being evaluated as an acquisition target. For the upcoming year an analyst has estimated the following values: net income = $300m, net interest after tax = $100m, change in deferred taxes = +$25m, depreciation = $200m, change..

  Determine the reorder point in terms of gallons of pigment

Assuming that it takes 20 days to receive an order once it has been placed, determine the reorder point in terms of gallons of pigment

  How much should he be willing to pay for this security

If the interest rate is 6%, how much should he be willing to pay for this security?

  Determine two to three methods of using stocks

Determine two to three methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

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!

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