If the Marginal Income Tax Rate (MTR) is 35%, a corporate bond that has an annual interest rate of 12.5% offers the same after-tax cash flow with a municipal bond that has an interest rate of * Multiple Choice - show work

6.13%

7.13%

8.13%

9.13%

Other:

If the Marginal Income Tax Rate (MTR) is 25%, a municipal bond with an annual rate of 6.5% offers the same after-tax cash flow with a corporate bond that has an interest rate of * Multiple Choice - show work

7.67%

8.67%

9.67%

10.67%

Other:

Junk bonds with higher yields are classified as * Multiple choice

Expansion Debentures

Premium Debentures

Subordinated Debentures

Ordinate Debentures

Other:

Types of instruments available on the bond market *Select all that apply

Treasury Notes and Bonds

Corporate Bonds

Municipal Bonds

Treasury Bills

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