Personal After-Tax Yield

1. An investor recently purchased a corporate bond which yields 9.5%. The investor is in the 32% combined federal and state tax bracket. What is the bond's after-tax yield? Round your answer to two decimal places.

2. Corporate bonds issued by Johnson Corporation currently yield 8.5%. Municipal bonds of equal risk currently yield 5.5%. At what tax rate would an investor be indifferent between these two bonds? Round your answer to two decimal places.

3. Income statement

Talbot Enterprises recently reported an EBITDA of $7.5 million and net income of $2.625 million. It had $2.175 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

4. Income statement

Talbot Enterprises recently reported an EBITDA of $7.5 million and net income of $2.625 million. It had $2.175 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.