What is Anne annual after-tax rate of return from the bond

Assignment Help Accounting Basics
Reference no: EM132637393

Question - Anne's marginal income tax rate is 32 percent. She purchases a corporate bond for $10,000 and the maturity, or face value, of the bond is $10,000. If the bond pays 5 percent per year before taxes, what is Anne's annual after-tax rate of return from the bond if the bond matures in 1 year? What is her annual after-tax rate of return if the bond matures in 10 years?

Reference no: EM132637393

Questions Cloud

Draw up a level book page : The following readings were taken with a level and 4 m staff. Draw up a level book page and reduce the levels by the Rise and fall method
Angle projections of an object : Name the 3 principal dimensions being used to describe the 3rd angle projections of an object.
Make a master budget for the year : Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre-CORONA virus year)
Explain normal and shear stress acting : Define and Explain Normal and Shear stress acting on plane and also its determination by plotting Mohr Circle.
What is Anne annual after-tax rate of return from the bond : If the bond pays 5 percent per year before taxes, what is Anne's annual after-tax rate of return from the bond if the bond matures in 1 year
Determine stresses at top : Determine stresses at top, bottom and level of reinforcement caused by a bending moment of 50 kN-m.
What management accounting issue in the article : What management accounting issue in the article and what management accounting techniques or tools that can use to tackle the issue in the article
Evaluate the proper accounting and framework : Evaluate the proper accounting and framework for this contract - is it a service concession arrangement? Consider by analogy any public company filings
What things will consist safety management system : How will you design an engineering machine considering safety in mind.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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