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An investor is trying to decide between a muni paying 5.25% or an equivalent taxable corporate paying 6.75%. What is the minimum marginal tax rate
An investor is trying to decide between a muni paying 5.25% or an equivalent taxable corporate paying 6.75%. What is the minimum marginal tax rate the investor must have to consider buying the municipal bond? A. 22.20% B. 28.60% C. 26.30% O D. 18.50% O E. 24.00% You purchased a 10-year TIPS note with the original par value of $1,000 and a 2% annual coupon rate. If the semiannual inflation rate is 1.0% for next 10 years, what would be the final payment (the coupon payment and the par value payment on the maturity date) would be? (Coupons are paid semiannually.) O A. $1,232 O B. $1,116 O C. $1,094 D. $1,184 E. $1,226
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