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stealth61 [152]
3 years ago
15

A 5.5%, 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond woul

d offer an equivalent taxable yield of:_____.
A) 8.2000.
B) 10.75%.
C) 11.40%.
D) 4.82%.
Business
1 answer:
Mariana [72]3 years ago
7 0

Answer:

B) 10.75%.

Explanation:

Marginal tax bracket = 33%

The 20 year old bond is being priced to yield 7.2%

We are required to find the equivalent taxable yield that this bond is going to offer.

Equivalent taxable yield =

Yield/(1-tax%)

= 7.2%/(1-33%)

= 10.75%

this bond would offer an equivalent taxable yield of 10.75%

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Based on verifiable research, it has been shown that "goals" influence the behavior of employees and give confidence to the strategic teams that make things happen.

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Goals setting also gives confidence to the strategic teams that make things happen by quantifying their success.

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8 0
3 years ago
If the value of an investment is $1500 in 12 years and the interest rate is 6%, how much is the investment worth now?
marissa [1.9K]

Answer:

$745.45

Explanation:

The expression that describes the future value of an investment (P) at an annual rate (r) for a period of n years, compounded annually is:

 FV = P*(1+r)^n

If the future value of an investment is $1,500 after 12 years at a rate of 6%, the present value (P) is:

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The investment is worth $745.45 today.

4 0
3 years ago
A company using the FIFO method had beginning work in process inventory of 10,000 units and completed 75,000 units. They also ha
Anna [14]

Answer:

the number of units started and completed is 65,000 units

Explanation:

The computation of the number of units started and completed is given below:

= Units completed - beginning work in process inventory units

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= 65,000 units

Hence, the number of units started and completed is 65,000 units

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3 years ago
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