Question

Your marginal tax rate is 32.65%. What is the tax equivalent yield of an L.A. County...

Your marginal tax rate is 32.65%. What is the tax equivalent yield of an L.A. County Flood Control District Revenue Bond, rated AA-, maturing 5/1/25 with a price of 106.67 and a coupon of 3.5%.? Round your answer to the nearest basis point.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that your marginal federal income tax rate is 20%, and the yield on thirty-year U.S....
Suppose that your marginal federal income tax rate is 20%, and the yield on thirty-year U.S. treasury bonds is 2.5% and the yield on thirty-year municipal bond 2.2%. What is the tax adjusted risk premium on the municipal bond?
If the marginal tax rate (MTR) is 35%, a 3.5% annual coupon rate municipal bond will...
If the marginal tax rate (MTR) is 35%, a 3.5% annual coupon rate municipal bond will have higher after-tax cash flow than a corporate bond with which annual coupon rates (choose all that apply)? 3.5% 4% 4.5% 5% 5.5% 6%
If you face a 10% marginal tax rate, what is your after-tax return on each of...
If you face a 10% marginal tax rate, what is your after-tax return on each of the following bonds? A 5% coupon semiannual corporate bond with 10 years to maturity, currently selling for $880. % A 8% coupon semiannual corporate bond with 12 years to maturity, currently selling for $1,060. % A 7% coupon semiannual municipal bond with 3 years to maturity, currently selling for $1,044. %
Suppose your marginal federal income tax rate is 20%; the yield on 20 year U.S.Treasury bonds...
Suppose your marginal federal income tax rate is 20%; the yield on 20 year U.S.Treasury bonds (T-Bond) is 10%. You would be indifferent between buying a 20 year T-Bond and a 20 year municipal bond, if the municipal bond has a yield of Group of answer choices 6.5%. 10.0%. 7.0%. 8%.
1- What is the discount yield, bond equivalent yield, and effective annual return on a $1...
1- What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 96.375 percent of its face value and is 75 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))    Discount yield % Bond equivalent yield % Effective annual return %...
Bond Yield and After-Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par...
Bond Yield and After-Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 25 years sells at a price of $747.72. The company's federal-plus-state tax rate is 35%. What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the nominal rate.) Round your answer to two decimal places. %
10-year bonds issued company X offer 5% coupon rate, payable annually. The bond is BB rated....
10-year bonds issued company X offer 5% coupon rate, payable annually. The bond is BB rated. The yield of 10-year T-bond is 3% and the credit spread between T-bond and BB rated bond is 500 basis-point (each basis point is one hundredth of one percent interest rate). What is the fair price of the bond for $10,000 par value?
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) Bond equivalent yield to maturity % Effective annual yield to maturity %
Assume that your firm's marginal tax rate is 35% and that your firm has the following...
Assume that your firm's marginal tax rate is 35% and that your firm has the following capital structure: Bonds: coupon rate = 6%, yield-to-maturity = 7.5%, Market value of bonds = $25 million, Book value of bonds = $30 million Common stock: Book value of common shares = $25 million, Market value of common shares = $50 million, Required rate of return (r) = 12.60% What is your firm’s Weighted Average Cost of Capital (report as a raw number, i.e....
What rate would we need on a mortgage to be equivalent on an effective yield basis...
What rate would we need on a mortgage to be equivalent on an effective yield basis with a bond that has a 7.5% interest rate? i dont know the frequency of periods, the professor wrote the wuestion like this
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT