PERSONAL FINANCE Homework Question (Cash or Liquid Asset Management)
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Asked: Nov 13th, 2016
Question description
QUESTION
1. Calculate the after-tax return of a 8.33 percent, 20-year, A-rated corporate bond for an investor in the 15 percent marginal tax bracket.
2. Compare this yield to a 5.82 percent, 20-year, A-rated, tax-exempt municipal bond and explain which alternative is better.
3. Repeat the calculations and comparison for an investor in the 33 percent marginal tax bracket.
ANSWER
1. The after-tax return of a 8.33 percent, 20-year, A-rated corporate bond for an investor in the 15 percent marginal tax bracket is ____?____%.
2.
3.
Tutor Answer
Europe(Continental)