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astraxan [27]
3 years ago
9

A corporate bond currently yields 8.10%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.5%. At wh

at tax rate would investors be indifferent between the two bonds?
Business
1 answer:
4vir4ik [10]3 years ago
6 0

Answer:

At tax rate 32.1%, investors be indifferent between the two bonds

Explanation:

Yield after tax of corporate bond = 8.1% * (1- tax rate)

Investors would be indifferent between the two bonds when Yield after tax of corporate bond equals to yield of tax free municipal bonds.

8.1% * (1- tax rate) = 5.5%

⇔ 8.1% - 8.1% * tax rate = 5.5%

Tax rate = (8.1% - 5.5%)/8.1% = 32.1%

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Answer:

he started and managed a business.

Explanation:

Entrepreneur is the person who is willing to take risk by putting his capital to create and operates business.

Emily Motycka gained his fame because he started and managed a business at 13. He created Motycka Enterprises  , a company that offers lawn mowing services to the suburban houses.

By the time he entered high school, he already earned  a 6 figure income, while most people only able to get that type of earning in their 30s.

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Ruth executes a will in 2012 naming her nephew stan as sole beneficiary. in 2014, ruth executes another will, naming her niece t
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3 years ago
Eurodollars are _________. A. dollar denominated deposits at any foreign bank or foreign branch of an American bank B. dollar de
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Answer:

A. dollar denominated deposits at any foreign bank or foreign branch of an American bank

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4 years ago
What do you understand by the term trashing? a. Looking through a suspect’s garbage for possible evidence. b. Destroying hard co
iVinArrow [24]

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When an investigation is being carried out, looking through a suspect's trash is a good strategy.

People tend to discard relevant documents in am investigation through their trash, and looking through their garbage can uncover items that will give insights on cases.

For example if an individual commits a fraud in the process of concealment he may have torn up a document, and put it in the trash for disposal. People feel nobody goes through trash and that it is a good way of disposing evidence.

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3 years ago
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