What is the after-tax or equivalent tax-exempt

Assignment Help Accounting Basics
Reference no: EM133055205

Question - Suppose you invest in a taxable corporate bond that is yielding 15% annual interest rate. If your marginal tax is 22%, what is the after-tax or equivalent tax-exempt yield on the taxable bond?

Reference no: EM133055205

Questions Cloud

Understanding of the importance of strategy : Understanding of the importance of strategy in business. You will also need to discuss how your project would impact stakeholders and provide relevant recommend
How large of an increase in fixed assets will company need : If Edney's sales increase 40%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio
When using different data algorithms : When using different data algorithms, why is it fundamentally important to understand why they are being used?
Service messages for covid19 : Choose three companies in the hospitality (service) industry.
What is the after-tax or equivalent tax-exempt : If your marginal tax is 22%, what is the after-tax or equivalent tax-exempt yield on the taxable bond
Connection between knowledge learned in classroom : Demonstrate an understanding of and relevance to your academic career by making a connection between knowledge learned in the classroom
Enterprise software and business processes : Discuss enterprise software and business processes.
Discuss the macroeconomic environment : Discuss the macroeconomic environment, PEST factors, industry competitive environment factors, and company strategy and business model
Effective annual interest rate : Compute the nominal annual rate of interest compounded quarterly (and the effective annual interest rate) at which $310 paid at the end of every three months fo

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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