Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. calculate the after-tax return of a 4.65 percent,

Calculate the after-tax return of a 4.65 percent, 20-year, A-rated corporate bond for an investment...

50.1K

Verified Solution

Question

Accounting

Calculate the after-tax return of a 4.65 percent, 20-year, A-rated corporate bond for an investment in the 15 percent marginal tax bracket. Compare this yield to that of a 3.25 percent, 20-year A-rated, tax-exempt municipal bond, and explain which alternative is better. Repeat the calculations and comparison for an investor in the 33 percent marginal tax bracket.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students