1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alona [7]
2 years ago
6

What's the taxable equivalent yield on a municipal bond with a yield to maturity of 3.9 percent for an investor in the 35 percen

t marginal tax bracket
Business
1 answer:
Nookie1986 [14]2 years ago
3 0

When a person has a marginal tax bracket of 35%, their taxable equivalent yield to a municipal bond is 6%.

<h3>What is the taxable equivalent yield?</h3>

It can be found by the formula:

= Municipal bond / ( 1 + tax rate)

Solving gives:

= 3.9% / ( 1 - 35%)

= 3.9% / 0.65

= 6%

In conclusion, a 6% return would be an appropriate taxable equivalent yield.

Find out more on municipal bonds at brainly.com/question/25656290.

You might be interested in
Charles wants to promote his gym and attract more elderly men to visit and become members. which of the following do you think w
8090 [49]

Out of the following answers, option A. seems most fitting. Elderly customers would likely want a calm environment where they can work at their own pace. The other options cater to other demographics. So A. would be an appropriate emphasis for Charles' message.

8 0
2 years ago
Read 2 more answers
The disadvantage of owning a mutual fund that invests in common stocks is the risk of loss of ___.
Ludmilka [50]

Answer:

"Principal" Since the value of common stock could decline to zero, investors do carry the risk of losing their entire principal. That risk is greatly reduced when investing in bonds, because if you hold a bond to its maturity date, you will at least get back the par value ($1000) of the bond.

Hope this helps :) -Mark Brainiest Please :)

5 0
3 years ago
What is the process of getting a product to a consumer? A. Research B. Distribution C. Wholesale D. Subcontracting
Oxana [17]
I think it b distribution
3 0
3 years ago
Read 2 more answers
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at
dem82 [27]
Boring 7 then - 9 from the Austin
7 0
2 years ago
Colleges and universities use funds from a direct stafford loan to pay for _____ first. leftover funds are then disbursed to the
Alexxx [7]
College and universities use funds from direct Stafford loan to pay for school charges first. It is offered to eligible students to help finance their education and it must be repaid and are offered to both undergraduate and graduate students.
3 0
3 years ago
Read 2 more answers
Other questions:
  • In the economy of Talikastan in 2015, consumption was $5300, GDP was $8800, government purchases were $1800, imports were $600,
    12·1 answer
  • The balance in Discount on Bonds Payable
    15·1 answer
  • Daniel, an entrepreneur, is planning to open a fast-food restaurant. He wants to cash in on the huge population of busy professi
    8·1 answer
  • Suppose the amounts presented here are basic financial information (in millions) from the 2022 annual reports of Nike and Adidas
    12·1 answer
  • Assuming that a is positive, theories of short-run aggregate supply are expressed mathematically as a. quantity of output suppli
    15·1 answer
  • Roger's Meat Market is a chain of retail stores that limits its sales to fresh-cut meats. The stores have been very profitable i
    6·1 answer
  • A US firm is bidding for a contract required by the Swiss government. The firm will not know until three months from now, whethe
    12·1 answer
  • Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2017. The following transactions occurred during th
    15·1 answer
  • A shopkeeper explains to you that she keeps down the cost of running her business because her husband works in the shop for free
    14·1 answer
  • The information content of a regular dividend increase generally signals that:Multiple Choicefuture dividends will be lower.the
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!