Question
The City of Tempe has a municipal bond outstanding with an interest rate of 3.6%. For an investor in the 15% tax bracket, what is
The City of Tempe has a municipal bond outstanding with an interest rate of 3.6%. For an investor in the 15% tax bracket, what is their tax equivalent yield?
4.6%
4.2%
4.4%
4.8%
Builtrite currently has a $1000 par, 7 year maturity, zero coupon bond outstanding that is selling for $711. What is the bonds yield to maturity?
6%
5%
3%
4%
If you purchase a $1000 par value bond for $1025 that has a 6 3/8% coupon rate and 8 years until maturity, what will be your annual return?
6.0%
6.1%
5.6%
5.8%
If your bond is convertible, you have the option of exchanging your bond for
zero coupon bonds
common stock
preferred stock
debentures
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