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5) A municipal bond (of similar risk) offers a 4% return. What is the investor's taxable equivalent yield for the municipal bond if he is

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5) A municipal bond (of similar risk) offers a 4% return. What is the investor's taxable equivalent yield for the municipal bond if he is in 20% tax bracket? 6) The following chart provides price (P) and number of shares outstanding (Q) data for stocks A,B, and C at the end of vear 0 and at the end of vear 1 . a) What was the equal-weighted, value-weighted, and price-weighted return on an index containing these three stocks, from year 0 to year 1 ? b) Stock A has a 4:1 stock split at the end of yearl. Update the columns PI and Q1. How does your answer to part a change? Calculate the new divisor of the price-weighted index following the split. 7) You are bullish on Curious Inc. stock and decide to purchase 200 shares at $55 per share. To do the transaction, you borrowed $4500 from your broker on 4% interest. a) What is your initial margin when you purchase the stocks? b) What is the remaining margin on your account, if the share price drops to $32 a year later? Will you get a margin call, if the maintenance margin is 35% ? c) What is the rate of return on your investment

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