Question
1 An investor buys a corporate bond that pays an interest rate of 8.64 percent. If the investor pays a marginal tax rate of 20.94
1 An investor buys a corporate bond that pays an interest rate of 8.64 percent. If the investor pays a marginal tax rate of 20.94 percent, what is his after-tax yield?
Enter answer in percents, accurate to two decimal places.
2. A municipal bond yields 6.92 percent. An investor in a marginal 26.07 percent tax bracket is comparing this bond with a similar corporate bond. What is the equivalent taxable yield on the municipal bond?
Enter answer in percents, accurate to two decimal places.
3. A recent stock quote for a company shows a price of $125, and a dividend yield of 8.63 percent. If that is the case, what is the most recent quarterly dividend paid to the shareholders?
Enter answer accurate to two decimal places.
4. A market value weighted index has three stocks in it, priced at 79, 36, and 77 per share, and each firm has 293, 304 and 341 thousand shares outstanding, respectively. The value of the index today is 908. Over the course of a month, the market does its random walk-y thing, and the prices of the three stocks change do 40, 31, 89, respectively. What is the new value of the index?
Enter answer accurate to two decimal places.
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