Question
municipal bond has a coupon rate of 6.10 percent and a YTM of 5.71 percent. If an investor has a marginal tax rate of 30
municipal bond has a coupon rate of 6.10 percent and a YTM of 5.71 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent pretax yield on a taxable bond?
2.Myca Corporation has a project with the following cash flows. What is the value of the cash flows today assuming an annual interest rate of 8.9 percent?
| Year | Cash Flow |
|---|---|
| 1 | $ 1,600 |
| 2 | 1,970 |
| 3 | 2,255 |
| 4 | 2,265 |
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
