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kap26 [50]
1 year ago
10

everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w

hen a. municipal bonds become more widely traded. b. income tax rates are lowered. c. income tax rates are raised. d. corporate bonds become riskier.
Business
1 answer:
posledela1 year ago
6 0

Interest rates would increase since the tax-exempt status of municipal bonds would lose some of its appeal and there would be less of a market for them as a result of the lower income tax rates.

When the income tax rate is reduced for municipal bonds, the value of the bonds will also decline because the tax-exempt status for the bonds will also be reduced as a result of the lower income tax rate. Additionally, it lessens the demand for municipal bonds.

To know more about the municipal bond visit here :

brainly.com/question/23962246

#SPJ4

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Andreas93 [3]

Answer:

12 months

2020 $22,400

2021 $22,400

24 months

2020 $22,400

2021 $44,800

Explanation:

Calculation to Determine the income to be recognized in taxable income in 2020 and 2021.

Length of Contract

12 months

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2021 Income=$44,800 * 6/12=$22,400

24 months

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2021 Income =$89,600 *12/24=$44,800

Therefore the income to be recognized in taxable income in 2020 and 2021 will be:

12 months

2020 $22,400

2021 $22,400

24 months

2020 $22,400

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6 0
3 years ago
Madison Finance has a total of $20 million earmarked for homeowner loans and auto loans, where x is homeowner loans in millions
Deffense [45]

Answer:

Ans. Car loans must be $4,000,000 and Home loans $16,000,000 in order to use all the conditions in the problem. Return= $2,000,000

Explanation:

Hi, well, you need to make sure to get as many car loans as the conditions of the problem allows you, since it returns 14%.

I used MS Excel solver to find this result, please download the excel spreadsheet attached to this answer.

Best of luck.

Download xlsx
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