Question
In September of 2016 it was reported that AAA rated corporate bonds with 20 years to maturity were yielding 3.18%, while AAA rated municipal bonds
In September of 2016 it was reported that AAA rated corporate bonds with 20 years to maturity were yielding 3.18%, while AAA rated municipal bonds of the same maturity yielded 2.57%.
a. Based on this information, what was the implied marginal tax bracket(break-even tax bracket) at that time for bonds of this maturity and risk level?
b. If a Clark County Water Reclamation District revenue bond yields 2.7%, what is its tax-equivalent yield for an investor in the 28% tax bracket?
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Answer 1 AAA rated Corporate Bonds maturity yielded 318 AAA Municipal bonds maturity y...
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Statistics Learning From Data
Authors: Roxy Peck
1st Edition
495553263, 978-1285966083, 1285966082, 978-0495553267
