Answer: 8.85%
Explanation:
GIVEN THE FOLLOWING ;
Municipal bond yield = 5.75%
After-tax rate = 35%
In other to produce the same after tax rate, What should be the yield of the synthetic company bond;
Assume yield on synthetic company bond = SC yield ;
We can connect our assumption using the mathematical relation below;
Municipal bond yield = after tax bond yield
5.75% = SC yield (1 - tax rate)
5.75% = SC yield (1 - 35%)
5.75% = SC Yield × 65%
SC yield = (5.75/65)%
SC yield = 0.08846%
SC yield = 8.85%
Answer:
Second National Bank
Present value (PV) = $5,400
Future value (FV) = $13,900
Interest rate (r) = 10% = 0.10
FV = PV(1 + r)n
$13,900 = $5,400(1 + 0.10)n
<u>$13,900</u> = (1.10)n
$5,400
2.574074074 = (1.10)n
Log 2.574074074 = n log 1.10
<u>Log 2.574074074</u> = n
Log 1.10
n = 9.9 years
None of the answers is correct
Explanation:
In this case, we will apply the formula of future value of a lump sum. The present value, interest rate and future value were provided with the exception of number of years. Thus, the number of years becomes the subject of the formula. The future value equals present value, multiplied by 1 plus interest rate, raised to power number of years.
<span>The opportunity cost of reading is watching TV.
</span>
Opportunity cost alludes to an advantage that a person could have gotten, yet offered up, to make another course of move. Expressed in an unexpected way, an opportunity cost that shows an alternative given up when a choice is made. This cost is, accordingly, most significant for two totally unrelated occasions.
The type of consumer product that this represent is: Specialty product.
<h3>What is specialty product?</h3>
A specialty product is a consumer product that a person tend to buy or purchase because the product are specially made or because the buyer like the unique features of the product.
A consumer may choose to spend heavily on a product that are more expensive or tend to buy a particular products or brand because they like the product or because the product gives them what they want.
Inconclusion the type of consumer product that this represent is: Specialty product.
Learn more about specialty product here:brainly.com/question/7062667
