What is the bond after-tax yield

Assignment Help Finance Basics
Reference no: EM131856470

An investor recently purchased a corporate bond that yields 7%. The investor is in the 30% combined federal and state tax bracket. What is the bond's after-tax yield?

Reference no: EM131856470

Questions Cloud

Providing musical instruments and supplies : Alto music is a levered company providing musical instruments and supplies through its retail outlets.
How much is the firm taxable income : The Talley Corporation had a taxable income of $500,000 from operations after all operating costs but before (1) interest charges of $70,000
What tax rate would an investor be indifferent : At what tax rate would an investor be indifferent between these two bonds?
Describe your experience with the muves : Describe how MUVES can help leaders and others participate in professional development workshops and personal learning networks.
What is the bond after-tax yield : An investor recently purchased a corporate bond that yields 7%. The investor is in the 30% combined federal and state tax bracket.
Who do you want to be as a leader : Understanding philosophy and Styles Discussion - who do you want to be as a leader? What will you see when you look in the mirror
Charge for depreciation and amortization : It had $1 million of interest expense, and its corporate tax rate was 36%. What was its charge for depreciation and amortization?
Draw a causal diagram incorporating all the variables : Draw a causal diagram incorporating all the above variables and effects. What control variables would you include in the second stage
Long portfolio and the call is exercised : If you are long portfolio A and the call is exercised, show that you will have at least K dollars plus the value of the put at time T,

Reviews

Write a Review

Finance Basics Questions & Answers

  How do you respond to your client

You are an investment adviser and a client makes the following statement: I do not want a diversified portfolio since I will never get the highest possible return. How do you respond to your client?

  What is the present value of a security that will pay 5000

what is the present value of a security that will pay 5000 in 20 yrs if securities of equal risk pay 7 annually?

  Discuss the nature of stock as an investment

Discuss the nature of stock as an investment. Do most stockholders play large roles in the management of the firms in which they invest? Why or why not?

  What is your own understanding of why apple inc is holding

What is your own understanding of why Apple Inc is holding $76.156 billion in cash and marketable securities? Can you relate Apple's decision to financial management theories? Provide your original discussion and example.

  Compute the npv and irr

Please compute the NPV and IRR for the following: Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year

  Auditors and their predictions-bankruptcy of client

For discussion purposes counter statement that it is worse for auditors to incorrectly predict bankruptcy than when auditors fail to predict bankruptcy.

  Why does the monthly payment plan have less total cash

Compare the annual cash outflow of the two payments. Why does the monthly payment plan have less total cash outflow each year?

  Define operating cycle and how operating cycle impacts

Define operating cycle and how the operating cycle impacts the cash cycle and why it is so important for a manager to know this so they can forecast their cash flow.

  First national bank pays 62 interest compounded

first national bank pays 6.2 interest compounded semiannually. second national bank pays 6 interest compounded monthly.

  Discuss on performance metrics and conversion rate

Discuss on Performance metrics and Conversion rate and Abandonment rate & Return on investments, Potential ethical issues facing an e-business

  At what inventory level should an order be placed

Media Moguls (M&M) normally sells 240,000 units per year. It costs M&M $52 to purchase each unit, the fixed cost of ordering is $260, and the carrying costs equal 15 percent of the unit's purchase price.

  How much will you have at the end of the 30 years

If the investment plan pays you 11 percent per year for the first 15 years and 7 percent per year for the next 15 years, how much will you have at the end of the 30 years?

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