What is the equivalent pretax yield on a taxable bond

Reference no: EM133430372

Question 1. A municipal bond has a coupon rate of 6.10 percent and a YTM of 5.71 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent pretax yield on a taxable bond?

Question 2. Myca Corporation has a project with the following cash flows. What is the value of the cash flows today assuming an annual interest rate of 8.9 percent?

Reference no: EM133430372

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