Answer:
7.78%
Explanation:
Equivalent taxable yield can be calculated as follows
Equivalent taxable yield = Coupon rate / 1 - Tax Rate
Equivalent taxable yield= 5.45%/ 1 - 30% x 100
Equivalent taxable yield = 7.78%
<span>Past costs that are not affected by new decisions are known as sunk costs. Sunk costs do not need to be taken into account when making new decisions because the money associated with it was already lost and it can not be regained. This money is lost by businesses due to bad decisions, such as poor investments.</span>
Answer:
The current yield is defined as the annual interest on a bond divided by the: market price
<h3><u>
Explanation:</u></h3>
When investors acquire bonds, they do so essentially to produce income. The demanded annual rate of return is summoned as the current yield, and it is a gathering of the prevailing price and the amount of interest the bond meets.
current yield is a crucial measure because it determines the rate of return on your expense for as longspun as you hold the bond. The current yield is equivalent to the annual interest gained divided by the current price of the bond.
