Find what will be the after-tax return rate-atrr

Assignment Help Econometrics
Reference no: EM13242070

On January 1, 1994 Popoff purchased a bond with a face value of $10,000 for $9,500. The bond was to pay 8 percent per year payable on December 31 of each year and be purchased back at the end of the 5th year for face value.
The before-tax rate for Popoff is 9.30%.
If he is a 25% combined tax rate what will be the after-tax return rate (ATRR) on this bond?

Reference no: EM13242070

Questions Cloud

Explain what is offshoring of white-collar service jobs : What is offshoring of white-collar service jobs, and how does it relate to international trade Why has it recently increased Why do you think more than half of all of the offshored jobs have gone to India
Write your individual answers to the questions : Question: What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.)? What fiscal policies and monetary policies would be appropriate at this time?
Describe what is a monopolistic competitive firm : What is a monopolistic competitive firm Given the same resources with a firm in a perfectly competitive industry, how could output and prices (of output) be different for both firms
Define a dioxin-contaminated water source contains : A dioxin-contaminated water source contains 0.081% dioxin by mass. How much dioxin is present in 4.2 L of this water? (Assume that the density of the solution is 1.01 g/mL.)
Find what will be the after-tax return rate-atrr : On January 1, 1994 Popoff purchased a bond with a face value of $10,000 for $9,500. The bond was to pay 8 percent per year payable on December 31 of each year and be purchased back at the end of the 5th year for face value.
Complete the analysis of variance : Complete the analysis of variance. At a .05 level of significance, is there a significant difference between the treatments?
Find how much before tax rate of return-btrr : If I am in the state marginal tax rate of 6% and the federal tax rate of 25%, how much before tax rate of return (BTRR) will I have to generate to yield an after-tax of return (ATRR) of 6%
Compute the frequency of the light emitted : Calculate the frequency of the light emitted when an electron in a hydrogen atom makes each of the following transitions.
Why might fire extinguishers exhibit positive externalities : a. why might fire extinguishers exhibit positive externalities b. draw a graph of the market for fire extinguishers, labeling the demand cruve, the social-value curve, the supply curve, and the social cost curve.

Reviews

Write a Review

Econometrics Questions & Answers

  How large will lilianas account balance be

Liliana Alvarez's employer offers its workers a two-month paid sabbatical every seven years. Liliana who just started working for the firm, plans to spend her sabbatical touring Europe at an estimated cost of $25,000.

  Calculate bwbs new long-run equilibrium demand curve

Determine the output level, price, and profits that will occur in long-run equilibrium. Assume a high-price, low-output scenario assuming a parallel shift of the firm's demand curve. Be sure to explain what you are doing and why.

  Compute gdp-ndp and ni

Using the following national income accounting data, compute (a) GDP, (b) NDP, (c) NI. All figures are in billions. Compensation of employees U.S. exports of goods and services Consumption of fixed capital (depreciation) Government purchases Taxes on..

  What will be the price of isabellas existing bond

Isabella buys a $1,000 bond that matures in 10 years (that is, she lends $1,000 to the U.S. Treasury for 10 years). The bond pays her $50 every year for 10 years. When the bond matures at year 10, she will receive her $1,000 back.

  What is minimum yearly production rate to make invesment

A manufacturing company is considering a capacity expansion investment at the cost of $250,000. The expansion would enable the company to produce up to 100,000 more parts and the useful life of the additional capacity is 7 years.

  How to apply central limit theorem

In a population Y=100 and Y=43. Use the central limit theorem to answer the following questions a. In a random sample of size n=100, find P(Y or = 98).

  At what price and quantity is zenvoxs total revenue maximize

The Zenvox Television Company faces a demand function for its products that can be expressed as Q = 4,000 - P + 0.5I, where Q is the number of televisions, P is the price per television and I is the average monthly income. Average monthly income i..

  How much utility will the marginal dollar yield

Let MUa=Z=10-x and MUb=Z=21=2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B- that is, x=y=10. How is the..

  Determine the interest rate compounded semiannually

every 6 months until he retires so that, beginning one year after his retirement, he will receive $30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.

  What is the marginal product of fishing for hour spent

In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour sp..

  What is the effective interest rate made in investment

In January of 2007 Mary bought 100 stocks of Apple Inc for $55 each. this stock paid an average dividend of $4.50 per stock until the end of each year until mary sold all the stocks in December 2012 for $75.50 each. What is the effective interes..

  Explain when four customers are selected at random

The Town-Pump service station has performed an analysis of its customers and found that 85% pay on credit and the rest pay cash. We are interested in finding the probability distribution of the random variable, X.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd