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scoundrel [369]
3 years ago
7

You can invest in taxable bonds that are paying a yield of 9.4 percent or a municipal bond paying a yield of 7.65 percent. Assum

e your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond?
Business
1 answer:
yarga [219]3 years ago
8 0

Answer:

Answer for the question :

You can invest in taxable bonds that are paying a yield of 9.4 percent or a municipal bond paying a yield of 7.65 percent. Assume your marginal tax rate is 21 percent. a. Calculate the after-tax rate of return on the taxable bond?

is explained below.

Explanation:

the after-tax rate of return on the taxable bond = 9.4%*(1-0.21)

the after-tax rate of return on the taxable bond = 7.426%

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An open market operation is the purchase or sale of _____ - _____ - by the _____ in the open market.
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<u>An open market operation is the purchase or sale of </u><u>government securities </u><u>by the </u><u>Federal Reserve System</u><u>  in the open market.</u>

What are open market operations?

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4 0
1 year ago
SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per u
tigry1 [53]

Answer:

6,704 units

Explanation:

The computation of the number of units sold is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $90 per unit - $36 per unit

= $54 per unit

So, the number of units sold is

= ($162,000 + $200,000) ÷ ($54 per unit)

= 6,704 units

4 0
3 years ago
The common stock of Shaky Building Supply has a beta that is 22 percent greater than the overall market beta. Currently, the mar
Bess [88]

Answer:

11.7%

Explanation:

The common stock of a shaky building has a beta of 22%

The market risk premium is 9.56%

The US treasury bill is 3.3 %

Therefore the cost of equity can be calculated as follows

= 3.3/100 + (1+22/100)(9.56)

= 0.033 + (1+0.22)(9.56)

= 0.033 + 1.22×9.56

= 0.033 + 11.6632

= 11.7%

5 0
2 years ago
A transaction that takes place between two parties who hold
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A related party transaction
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8 0
2 years ago
Ortega company manufactures computer hard drives. the market for hard drives is very competitive. the current market price for a
Elina [12.6K]

<span>To calculate for the amount that the Ortega company should sell their computer hard drives, we have to sum up or add up the market price and the profit they want. The total is equivalent to $72. Although selling at this price will guarantee them the desirable profit per piece, it is to be noted that the market is in tight competition so they may opt to lower down the price. </span>

3 0
3 years ago
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