Question
A tax-exempt municipal bond with a coupon rate of 4.00% has a market price of 98.58% of par. The bond matures in 15.00 years and
A tax-exempt municipal bond with a coupon rate of 4.00% has a market price of 98.58% of par. The bond matures in 15.00 years and pays semi-annually. Assume an investor has a 20.00% marginal tax rate. The investor would prefer otherwise identical taxable bond if it's yield to maturity was more than _____%
A taxable bond with a coupon rate of 4.00% has a market price of 98.66% of par. The bond matures in 8.00 years ans pays semi-annually. Assume an investor has a 19.00% marginal tax rate. The investor would prefer otherwise identical tax-exempt bond if it's yield to maturity was more than _____%
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
