Answer:
it would be 10,000 for 4.00% interest for 4 years.
Explanation:
the reason is the amount would turn out at 10,824 dollars and you earned 824 dollars in income.
Answer:
The correct answer is <em>The sale of the firm's bonds.</em>
Explanation:
The sale of bonds refers to the alienation of these securities by the investor, which implies not being part of the liability of the issuing company.
The sale of bonds involves the following cases:
- Sale at book value
- Sale on book value
- Sale under book value
Bonds are investments made by the company in the past, in order to obtain returns in the future.
Answer:
4.524%
Explanation:
Jackson's marginal tax rate = 22%
after tax return of Sundial Incorporated bonds = 5.8% x (1 - 22%) = 4.524%
since municipal bonds are not taxed by the federal government, in order to compare the yields we must calculate the after tax return of corporate bonds. On the other hand, federal bonds do not pay state and local taxes.
