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klasskru [66]
2 years ago
12

g What is the after-tax yield on a one-year corporate bond with a 7 percent yield if your marginal federal income tax rate is 40

% 2.8% 4.2% 5% 5.3% 6.2%
Business
1 answer:
Triss [41]2 years ago
6 0

Answer: 4.2%

Explanation:

Bonds are debt instruments which means that the interest paid on bonds is tax deductible. After the tax is deducted, the after tax yield shows the actual yield being paid on the bond given the tax rate.

The after tax yield on a bond is calculated by the formula:

= Before tax yield * ( 1 - Tax rate)

= 7% * ( 1 - 40%)

= 4.2%

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sammy [17]

Explanation:

Thank you for this brilliant question, the truth is that you do not have to pay the fee yourself, you parents are meant to pay the fee for you, think of it, when you are asked for school fee in school, who is expected to pay? your mom i guess right, same thing with paying for answers, which is still part of your education, now paying for answers so that you keep learning is the obligation of your parents (mom or dad).

Thank you if you need for clarification do not hesitate to ask more questions

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Explanation:

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4 0
2 years ago
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When driving in the city, _____ may help you avoid traffic, but they may not be as safe or they may increase your travel time be
Darya [45]
The correct answer is side streets.
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why might a bank offer to make a loan to a consumer at a low initial rate which will increase after a set period of time?a. too
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I believe the answer is: c. to make the loan look more attractive and competitive now

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hammer [34]

Answer:

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The store owner found a relationship between A, B and C.

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