What is the taxable equivalent yield on a municipal bond with a yield to maturity of 2.9
Question:
What is the taxable equivalent yield on a municipal bond with a yield to maturity of 2.9 percent for an investor in the 28 percent marginal tax bracket?
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (16 reviews)
The pretax yield that chargeable bond requires to own for its yield to ...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted:
Related Video
The yield to maturity (YTM) is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. This video will give a complete tutorial on how to calculate Yield to Maturity on Microsoft Excel
Students also viewed these Finance questions
-
A client in the 28 percent marginal tax bracket is comparing a municipal bond that offers a 4.5 percent yield to maturity and a similar-risk corporate bond that offers a 6.45 percent yield. Which...
-
A Treasury bond with 8 years to maturity is currently quoted at 107:14. The bond has a coupon rate of 7.5 percent. What is the yield value of a 32nd for this bond?
-
An investor in the 28 percent tax bracket is trying to decide which of two bonds to select: one is a 5.5 percent U.S. Treasury bond selling at par; the other is a municipal bond with a 4.25 percent...
-
CPA firm brings in a yoga instructor during the tax busy season to help relieve stress of the employees. Which is true about the CPA firm's ability to take a deduction for the yoga instructor's...
-
In the absence of any legal barriers on immigration from Neolandia to the United States, the economic conditions in the two countries generate an immigrant flow that is negatively selected. In...
-
Sulphur trioxide is produced according to the reaction \[ \mathrm{SO}_{2}(\mathrm{~g})+\frac{1}{2} \mathrm{O}_{2}(\mathrm{~g}) ightarrow \mathrm{SO}_{3} \] Given that \[ \begin{aligned} & \Delta...
-
Bank of America lent $100,000 to Christine Kleuters on a 90-day, 8% note. Record the following transactions for Bank of America (explanations are not required): 1. Lending the money on June 12. 2....
-
Calculate the forces FA and FB that the supports exert on the diving board of Fig. 9-42 when a 58-kg person stands at its tip. (a) Ignore the weight of the board. (b) Take into account the boards...
-
University Road is best described as the interval [0,1]. Two fast-food restaurants serving identical food are located at the edges of the road, so that restaurant 1 is located on the most left-hand...
-
Solve the following problems involving interest. Show your solution. 1. To expand his business in selling accessories, Carl needs a loan of PHP50,000. A bank approved his loan at 10% annual interest...
-
What is the taxable equivalent yield on a municipal bond with a yield to maturity of 3.5 percent for an investor in the 33 percent marginal tax bracket?
-
Rank from highest credit risk to lowest risk the following bonds, with the same time to maturity, by their yield to maturity: Treasury bond with yield of 5.55 percent, IBM bond with yield of 7.49...
-
What is the result of compiling and executing the following class? A. The code does not compile due to line x. B. The code does not compile due to line y. C. 31 D. 61 public class Tolls { private...
-
If you worked for one of the oil companies and were tasked to negotiate an oil contract with the Nigerian government, how would you go about it? What would you recommend your company do? Why?
-
Suppose that a person has an average heart rate of 62.0 beats/min. How many beats does he or she have in 1.0 y? Incorrect not valid decimal or scientific notation. In 1.00 y?
-
Explain how quality pedagogical practice is reinforced by marte meo and research about children's learning?
-
What is a personality trait you have in common with your parents? Perhaps it is a reaction you have in certain situations or something you find yourself saying. Is it a good or bad thing you picked...
-
If f is one-to-one and f(6) = 5, then 1 (5) = and (f(6)) = Question Help: Video Message instructor Calculator Submit Question
-
A key factor in helping managers understand cost behaviour is distinguishing between variable and fixed costs. Test your understanding by answering the following questions. 1. A producer of premium...
-
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
-
Corn prices have surged 80 percent in the past year, driven up by a global rush for grains to feed people and livestock and to make biofuel. USA Today, June 26, 2008 Explain why the price of corn...
-
You borrow $85,000; the annual loan payments are $8,273.59 for 30 years. What interest rate are you being charged?
-
a. Find the present values of the following cash flow streams at 8% compounded annually. b. What are the PVs of the streams at 0% compoundedannually? + + $400 + $400 Stream A Stream B $0 $400 $100...
-
Your client is 40 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year; and you advise her to invest it in the stock...
-
1. What is the Uniform Commercial Code? Why does it exist? 2. What is a "mixed sale"? How do we test to determine if a "mixed sale" is covered by the U.C.C? 3. What terms can a court supply under the...
-
Builders' Liens create claims for the suppliers of goods and services, against the real property for which they have been supplied, Lien registered against Title to land Legislation stipulates the...
-
Desy Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication...
Study smarter with the SolutionInn App