Corporate bond yielding and tax-free municipal bond yielding

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Reference no: EM131931933

1. During Aug 2013 USD/INR reached the level of 68. Subsequently Reserve Bank of India took some measures to bring down the volatility and Rupee came back to the level of 62-63. Please analyze the measures taken up by Reserve Bank.

2. At what marginal tax rate would an investor be indifferent between a corporate bond yielding 8.5 percent and a tax-free municipal bond yielding 6.25 percent?

3. You are thinking about buying a corporate bond with a 5.5% yield at a price of 99.6 percent of face. What is the dollar coupon per year? What is the current yield?

Reference no: EM131931933

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