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matrenka [14]
3 years ago
14

An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.4%, respectively. If the in

vestor is in the 15% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____..
Business
1 answer:
r-ruslan [8.4K]3 years ago
3 0

Answer:

The answer are:

  • Municipal bonds have an after tax rate of return of 5%
  • Corporate bonds have an after tax rate of return of 5.44%

Explanation:

Since earnings from municipal bonds are exempt from income taxes, their after tax rate of return is 5% (doesn't vary).

On the other hands earnings from corporate bonds are taxed by 15%. To calculate the after tax rate of return we multiply:

nominal rate of return x (1 - tax rate) = 6.4% x (1 - 15%) = 6.4% x 0.85 = 5.44%

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. It is important to conserve fossil fuels because
Marat540 [252]

Explanation:

However, there is a more important reason to conserve fossil fuels, and that's to help heal the environment. Burning petroleum, coal and natural gas fills the air with harmful pollutants, including nitrogen oxides, sulfur dioxide, carbon dioxide, ozone and a host of hydrocarbons.

3 0
3 years ago
Avalon Industries buys equipment for $50,000, expects to use it for Five years, and then sell it for $6,200. Using the straight-
svet-max [94.6K]

Answer:

Annual depreciation= $8,760

Explanation:

Giving the following information:

Avalon Industries buys equipment for $50,000, expects to use it for Five years, and then sell it for $6,200.

We need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (50,000 - 6,200)/5= $8,760

8 0
3 years ago
If you attended Mt. IveySchmivey—with a 4 year tuition of $125,000—and paid a monthly loan payment of $562 (roughly 15% of your
neonofarm [45]
It will 19.5 years.

Tuition=$125,000
Interest rate= 5%
5% of $125,000 = $6,250
$125,000 + $6,250 = $131,250
$131,250/$562(monthly payment) = 233.540925
233.540925/12(months in a year) = 19.4617438
round up and it 19.5 years
6 0
4 years ago
Read 2 more answers
Find two competing products. Evaluate consumer reviews and ratings regarding these two products. Decide which is the superior pr
Vlada [557]

Dettol and Lifebuoy product comparison is taken

Explanation:

1. Features - The color of Dettol packaging is Green in color ,and Lifebuoy is Red in color. This makes the major physical difference in the products.

2.Benefits - Both oh them exhibit the same benefits of detoxing and use of disinfectant of germs. Soaps. liquid hand wash and hand sanitizers are the most common products of them.

3. Product Information- Dettol contains Chloroxylenol whereas Lifebuoy contains germ protection soap bars.

4.Style -Lifebuoy is a ring or horseshoe shaped and has a connecting line allowing the causality to be pulled to the rescuer in a boat.

5. Performance- Both the products have pros and cons attached to it. Where dettol is superior in some features whereas Lifebuoy has some superiority in other certain things.

Though both exhibit almost the same characters , it totally depends upon the person which they prefer over the two products.

5 0
4 years ago
A steel company sells some steel to a bicycle company for $100. The bicycle company uses the steel to produce a bicycle, which i
elixir [45]

Answer:

$200 to (GDP)

Explanation:

GDP stands for Gross Domestic Product and it is the total measure of a country's total economic activity. It is monetary of all the goods and services produced within the country for particular period of time.

Therefore, the transactions between the steel company and bicycle company as contributed $200 because GDP is calculated by adding private investment, private consumption, Government investment, government, government spending and the likes together.

7 0
3 years ago
Read 2 more answers
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