What is the taxable equivalent yield

Reference no: EM131204693

Many states also exempt interest on municipal bonds from state income taxes if those bonds are issued by that state or its local governments. Suppose that you buy municipal bonds issued in your state, and your federal marginal tax rate is 28 percent and your state marginal tax rate is 6 percent. If the yield on the bonds is 3.5 percent, what is the taxable equivalent yield?

Reference no: EM131204693

Questions Cloud

What is a communications plan used : What is a communications plan used for and why is it important?

What other factors might you want to take into account : What other factors might you want to take into account? How would your answer be different if the interest rate was 8 percent?

Understand the new culture and corporate structure : Design 5 interactive, engaging activities to help employees: Get in touch with their innovative, creative side and encourage team building. Understand the new culture and corporate structure.

Why would your research question be important to study : What lessons did you learn from studies such as Kinsey's and Master's & Johnson's that will help you design your own study? Explain how you would go about investigating your research study (e.g., describe type of research method used, your sample, ..

What is the taxable equivalent yield : f the yield on the bonds is 3.5 percent, what is the taxable equivalent yield?

Wireless security perimeter defenses matrix : Complete the attached Wireless Security Perimeter Defenses Matrix by discussing the wireless security topics in each of the rows as they relate to a security advisory that your learning team will present to the management group of XYZ Company. Iss..

How would such a condition affect your work life : What happens in the inner ear (cochlea) when sound waves are converted to neural signals? How is sound frequency (pitch) processed? Next, summarize the causes of presbycusis and explain how they will interfere with the normal processing of sound ..

What factors might account for that difference : Thinking globally. Compare the composition of spending in the US federal budget to the federal budget in Canada, which is similar to the United States in income level and federal structure. How does the spending mix differ? What factors might acco..

Explain the type of cost system you plan to implement : Explain the type of cost system you plan to implement in your company, and identify any major challenge(s) in implementing your cost system. Suggest a way to overcome the identified challenge(s).

User Account

All Pages