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Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000 if you pay $9,800.00 to purchase it and receive its
Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000 if you pay $9,800.00 to purchase it and receive its full face value at maturity. The percentage return is %. (Round to two decimal places.) Calculate the after-tax return of a 13.19 percent, 20-year, A-rated corporate bond for an investor in the 10 percent marginal tax bracket. Compare this yield to a 8.35 percent, 20-year, A-rated, tax-exempt municipal bond, and explain which alternative is better. Repeat the calculations and comparison for an investor in the 35 percent marginal tax bracket. The after-tax return of a 13.19 percent, 20-year, A-rated corporate bond for an investor in the 10 percent marginal tax bracket is%. (Round to two decimal places.)
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