1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shusha [124]
2 years ago
12

An investor buys an 8% municipal bond in the secondary market on a 10% basis. The investor does not accrete the bond discount an

nually. If the bond is held to maturity, after considering taxes to be paid, the investor's yield will be:
A. 8%
B.10%
C. more than 8% but less than 10%
D. less than 8%
Business
2 answers:
adell [148]2 years ago
5 0

Answer: C

Explanation:

This is because although the coupon rate is devoid of federal income tax any market discount is taxed as interest income earned. So so if there is a way that they can be taxed without jeopardizing their basic Federal income tax-free status, why not? The discount can be accreted annually and tax paid, or the tax can be paid at maturity or sale date.

Delicious77 [7]2 years ago
4 0

Answer: A 8%

Explanation:

<em>For  a primary or secondary market, Municipal bonds of 8%  was bought at a premium  that are also a  part of the process of that premium.</em>

<em>The investor's interest which  is a non-taxable income, for each yea,r it is decreased by the amortization amount with the same process, the cost of the bond'a basis is decreased by the amortization amount.</em>

<em>At a growth level rate, the bond would not have a loss or capital gain since the cost basis that was adjusted has been amortized to $1000, for which the bond was regained at $1000.</em>

<em>Furthermore, the bond will grow at 8% after tax yield, which was early stated.</em>

You might be interested in
Milton Friedman, Karthik Ramanna, and Peter Singer walk into a bar. Unfortunately, itâs not a joke. You are the unlucky bartende
Lilit [14]

Answer:

Consider the following explanation

Explanation:

The discussion started with Mr. Friedman explaining how the want and setting up on MNCs have become way more easier than it was a couple of decades ago. This is because the role of business in the society has increases. With increasing population the demand needs to be met on that level as well. Agreeing with the latter point Mr. Karthik said that yes, the demand needs to met but that should not make MNC and their setup easy. The quality according to him suffers.

Mr.Karthik said that the MNCs are also huge retail shops who must make sure that their production of goods and services are worth opting for. This is actually what business is supposed to do. Unlike the two gentlemen who are busy taking out the judgement on what is right and wrong in business and role it plays in the society, Mr.SInger started to add an important aspect. According to his view the greater role of business today, lies in the fact that it must benefit the society and reap positive externalities.

This is where the Corporate social responsibility comes in. The usage of resources and then replenishing it back into the nature is very very important according to Mr.Singer. He explained why the industries should not be given the liberty to discharge waste anywhere but must be either penalised or made to indulge in the act of social responsibility. With such conclusive thought s all th three agreed on a larger perspective of business.

3 0
3 years ago
SEND HELP 90 POINTS AND A CROWN
Bond [772]

Answer:

a. background check

Explanation:

thats what they do when they're looking into your history

3 0
3 years ago
Read 2 more answers
Knowledge Check 01 On March 1, a designer received a check for $7,500 from a customer for services to be provided after the cust
Yakvenalex [24]

Answer:

              The Designer Journal Entry

Date         General Journal                 Debit            Credit

July 31      Unearned Revenue            $7,500  

                Design Services Revenue                     $7,500

4 0
3 years ago
Income received by households through the lending of their money to corporations and business firms is an example of
ra1l [238]

Answer:

Interest / Dividend Income

Explanation:

6 0
3 years ago
Read 2 more answers
Peng Company is considering buying a machine that will yield income of $2,100 and net cash flow of $19,500 per year for three ye
irina [24]

The accounting rate of return for this investment given its income, cost of the machine and the salvage value is 8.05%.

<h3>What is the accounting rate of return?</h3>

The accounting rate of return is a capital budgeting method used to determine the level of profitabiliy of an investement.

Accounting rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2

Average book value = (59700 - 7500) / 2 = $21,600

Accounting rate of return = $2100 / 21600 = 8.05%

To learn more about Accounting rate of return, please check: brainly.com/question/13034173

#SPJ1

3 0
2 years ago
Other questions:
  • Botox Facial Care had earnings after taxes of $310,000 in 20X1 with 200,000 shares of stock outstanding. The stock price was $53
    12·1 answer
  • Questions for the Opening Vignette Why is it important for IRS and for U.S. state governments to use data warehousing and busine
    5·1 answer
  • Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization.a. or
    15·1 answer
  • Which of the following is not a type of savings account? A) money market savings B) savings bonds C) basic savings D) certificat
    14·2 answers
  • Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market
    9·1 answer
  • The balance sheet of FIFA Cup Company included the following shareholders' equity section at December 31, 2021: ($ in millions)
    7·1 answer
  • When u ask questions do points get deducted
    6·2 answers
  • If you could choose anything to be? (must be in essay)​
    7·1 answer
  • What do intentional torts, negligence, and strict liability have in common?
    7·1 answer
  • Different segments of the project are delegated to respective functional units. this is called?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!