What is your after-tax yield on this bond

Assignment Help Financial Management
Reference no: EM13976655

A U.S. Treasury bond pays 9.5 percent interest. You are in the 25 percent tax bracket. What is your after-tax yield on this bond?

1.28 percent

2.23 percent

7.13 percent

8.35 percent

9.50 percent

Reference no: EM13976655

Questions Cloud

Regarding the weighted average cost of capital : Which of the following statements regarding the weighted average cost of capital (WACC) is correct? The WACC used to evaluate capital budgeting projects is a historical, before-tax cost of capital. Target capital structure changes do not affect the W..
Interest rates and debt securities assessment : Form a discussion on the possible determinants of market interest rates. For each determinant offer illustration for when that determinant may tend to be either stronger or weaker and what is the driving force for that differential impact. For exampl..
Determine the electric potential at the origin : Two protons are located on a coordinate plane, the first on the x-axis at 1.0 m and the second on the y-axis at 1.5 m. Determine a) the electric potential at the origin, and b) the electric potential energy of a third proton located a the origin.
Dollar lotto : What would be your recommendation to someone who won the $1 million dollar lotto and had two choices; take 20 payments of $50,000 per year or a lump sum of $500,000?
What is your after-tax yield on this bond : A U.S. Treasury bond pays 9.5 percent interest. You are in the 25 percent tax bracket. What is your after-tax yield on this bond?
Discuss various types of communications and explain it : Project communication is one of the most important factors in project management. A project manager will spend most of his/her time on communications.
Using the corporate tax rates find the marginal tax rate : Using the corporate tax rates find the marginal tax rate for the following levels of corporate earnings: 13,100; 60,600; 88,200; 204,000; 402,000; 1.6 million and 19.8 million.
What will the annual cash flow be : If you put up $54,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be?
What are the dividends and earnings per share : Billy’s Exterminators, Inc., has sales of $746,000, costs of $300,000, depreciation expense of $52,000, interest expense of $36,000, a tax rate of 35 percent, and paid out $90,000 in cash dividends. The firm has 100,000 shares of common stock outstan..

Reviews

Write a Review

Financial Management Questions & Answers

  No-arbitrage arguments and risk-neutral valuation arguments

A stock price is currently $40. It is known that at the end of six months it will be either $48 or $32. The risk-free rate of interest with continuous compounding is 8% per annum. Calculate the value of a six-month European call option on the stock w..

  What is the value of the firms equity and debt

Sunburn Sunscreen has a zero coupon bond issue outstanding with a $12,000 face value that matures in one year. The current market value of the firm’s assets is $13,800. What is the value of the firm’s equity and debt if Project A is undertaken? What ..

  Optimal combination of projects given capital constraint

Assume that your capital is constrained, so that you only have $500,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects y..

  Annual payment mortgage at interest rate

You recently purchased a new home and obtained a $100,000 15 year annual payment mortgage (payments due at the end of each year) at a 6% interest rate. Compute the yearly payment.

  What is the maximum increase in money supply

Assume that the Federal Reserve injects $2 billion into the financial system. If the reserve requirement is 18%, what is the maximum increase in money supply? Why might the maximum increase not be achieved?

  1 calculate the annualized forward premium or discount on

1. calculate the annualized forward premium or discount on six-month forward yen.2. if you are planning to go to japan

  Semi annual bonds-what is the bonds price

Haswell Enterprises' semi annual bonds have a 10-year maturity, a 6.25% semi annual coupon, and a par value of $1,000. The going rate of interest is 4.75%. What is the bond's price?

  Requires initial fixed asset investment

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,400,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..

  Preparing to calculate its cost of debt

Handy Dandy Inc is preparing to calculate its cost of debt. It presently has debt outstanding that pays $ 81 per year in interest and has seven years left unto maturity. The current market value of those bonds is $ 1,090. The company pays 35% in taxe..

  Discuss how the organization can capitalize on the

bull write a brief company history including a mission statement if available.section iibull thoroughly explain at

  What is the average direct labor cost rate

What is the average direct labor cost rate and What is the overhead rate.

  Total amts that make banks balance sheet balance

Second National Bank Balance Sheet as of _____date (figures in million$) Assets: Cash assets: 5 Government Securities owned: 7 Loan secured by real estate: 30 Commercial industrial loans : 18 Bank fixed assets: 14 Total Assets 74 Liabilities Federal ..

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