What yield must an a- rated municipal bonds carry

Assignment Help Finance Basics
Reference no: EM13302664

Corporate bonds carry an A rating are currently being price to yield 8.62%. For investor in 28% income tax bracket, what yield must an A- rated municipal bonds carry to make this investor indifferent as to the yield difference between the corporate and the municipal bond?

Reference no: EM13302664

Questions Cloud

What must the ph be raised to in order to precipitate : Groundwater in Taupe, Arizona, initially contains 1.8 mg/L of iron(III). What must the pH be raised to in order to precipitate 0.3 mg/L of the iron (T=25°C)
What was the total revenue total expenditures for the state : What was the total revenue total expenditures for the state and local government combined? Was the state local government sector running an overall deficit or surplus in its combined budget? Will borrowing likely be necessary to finish out the cur..
Find the velocity of the block after being hit by the bullet : A bullet of mass 22 g is fired horizontally from a gun with a velocity of 1150 m/s into a wooden block of mass 8.0 kg sitting on a horizontal table
What is the soils unit weight when the degree of saturation : A dry quartz sand has a unit weight of 100 pcf. What is the soil's unit weight when the degree of saturation is 75% if Gs = 2.66
What yield must an a- rated municipal bonds carry : For investor in 28% income tax bracket, what yield must an A- rated municipal bonds carry to make this investor indifferent as to the yield difference between the corporate and the municipal bond?
Product promotions for the populationof cook county : For the first part of this assignment, consider the following case. A marketing firm isevaluating the possibility of using a series of product promotions for the populationof Cook County
Transgene is used in mice to knock out a specific function : When a transgene is used in mice to knock out a specific function, two problems that might occur are the unintended introduction of multiple copies, or abnormal gene expression. In this case, abnormal gene expression is related to which of the follow..
What is the height of the image of the insect : A concave mirror has a radius of curvature of 34.8 cm. What is the height of the image of the insect
How many inches of rain can fall over the entire barge : A barge measures 10 ft (depth) by 35 ft by 120 ft and weighs 100 U.S. tons. The barge floats in fresh water (specific weight = 62.4 lb/ft3) and is evenly filled with 38,000 bushels of corn (60 lb/bushel).

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