Ask Question
3 February, 11:34

You can invest in taxable bonds that are paying a yield of 9.4 percent or a municipal bond paying a yield of 7.65 percent. Assume your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond?

+4
Answers (1)
  1. 3 February, 12:13
    0
    Answer for the question:

    You can invest in taxable bonds that are paying a yield of 9.4 percent or a municipal bond paying a yield of 7.65 percent. Assume your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond?

    is explained below.

    Explanation:

    the after-tax rate of return on the taxable bond = 9.4% * (1-0.21)

    the after-tax rate of return on the taxable bond = 7.426%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You can invest in taxable bonds that are paying a yield of 9.4 percent or a municipal bond paying a yield of 7.65 percent. Assume your ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers