What is the equivalent taxable yield on the municipal bond

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Question 1 - An investor buys a corporate bond that pays an interest rate of 8.35 percent. If the investor pays a marginal tax rate of 25.1 percent, what is his after-tax yield?

Question 2 - A municipal bond yields 5.02 percent. An investor in a marginal 41.35 percent tax bracket is comparing this bond with a similar corporate bond. What is the equivalent taxable yield on the municipal bond?

Question 3 - A recent stock quote for a company shows a price of $173, and a dividend yield of 9.64 percent. If that is the case, what is the most recent quarterly dividend paid to the shareholders?

Reference no: EM132206433

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