Ask Question
24 April, 02:36

A municipal bond has a coupon rate of 5.11 percent and a YTM of 5.41 percent. If an investor has a marginal tax rate of 35 percent, what is the equivalent pretax yield on a taxable bond

+4
Answers (1)
  1. 24 April, 02:53
    0
    Answer:pretax yield = 5.11 x 1.35 = 6.8985 = 6.90%

    Explanation:

    a pretax yield is a yield that a taxable bond must have in order for the yield to equal to a yield of a bond that is tax free

    pretax yield = 5.11 x 1.35 = 6.8985 = 6.90%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A municipal bond has a coupon rate of 5.11 percent and a YTM of 5.41 percent. If an investor has a marginal tax rate of 35 percent, what is ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers