What is the bond after-tax gross yield

Assignment Help Finance Basics
Reference no: EM131717785

Question: Suppose a corporate bond an investments officer would like to purchase for her bank has a before-tax yield of 8.98 percent and the bank is in the 35 percent federal income tax bracket. What is the bond's after-tax gross yield? What after-tax rate of return must a prospective loan generate to be competitive with the corporate bond? Does a loan have some advantages for a lending institution that a corporate bond would not have?

Reference no: EM131717785

Questions Cloud

What is the bond ytm : If a government bond is expected to mature in two years and has a current price of $950, what is the bond's YTM if it has a par value of $1,000 and a promised.
Compute an estimate of the ending balance of accounts : Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages
Explain effects of secs data breach disclosure requirement : Explain the effects of the SEC‘s data breach disclosure requirement on financial reporting, based on the current language of the requirement.
Substantiate the hospital director claim : A sample of 200 tubes found 122 errors. Is there sufficient evidence at the 0.02 level to substantiate the hospital director's claim?
What is the bond after-tax gross yield : Suppose a corporate bond an investments officer would like to purchase for her bank has a before-tax yield of 8.98 percent and the bank is in the 35 percent.
Prepare pharoahs november entry : Prepare Pharoah's November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest
Substantiate the hospital director claim : A sample of 200 tubes found 74 errors. Is there sufficient evidence at the 0.05 level to substantiate the hospital director's claim?
Describe the role of gestalt principles in perceptual : Describe the role of Gestalt principles in perceptual organization. Explain how these principles help us organize our world.
Explain the concepts related to perception of motion : Develop an annotated bibliography including 8 to 10 peer-reviewed sources on concepts related to perception of motion, depth, and size.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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