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Lunna [17]
3 years ago
11

Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 5.50 percent. Use the formula present

ed in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
Debora [2.8K]3 years ago
4 0

Answer:

8.46%

Explanation:

Calculation for the the taxable equivalent yield for this investment

Using this formula

Taxable equivalent yield

=Tax-exempt yield / (1 − Your tax rate)

Let plug in the formula

Taxable equivalent yield=0.055 / (1 - 0.35)

Taxable equivalent yield=0.055/0.65

Taxable equivalent yield=0.0846*100

Taxable equivalent yield= 8.46%

Therefore the taxable equivalent yield for this investment is 8.46%

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On January 1, 2016, Tonika Company issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The
disa [49]

Answer:

Option C is correct one.

Interest expense 773

Discount on bonds payable 73

Cash 700

Explanation:

2016 interest expense  = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate

= $9,668 x 08

= $773

Cash interest payment

= maturity value of the bond x the stated interest rate = $10,000 x .07

= $700  

Amortization of discount on bonds payable

= interest expense - interest cash payment

= $773 - $700.

= $73  

3 0
3 years ago
An entrepreneur started a small consulting business to provide training on multi-culturalcommunication to large corporations, ed
balandron [24]

Answer:

b.

Explanation:

Based on the scenario being described within the question it can be said that this is an example of strategies to improve customer responsiveness and innovation. Which is what the training class is providing by teaching the managers these skills they will be able to better communicate with customers is a wide range of circumstances, thus increasing customer responsiveness.

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3 years ago
A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied;
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Answer:

supply curve to the right.

Explanation:

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the supply curve to the right. Drought refers to a period characterized by little or no rainfall in a geographical location over a specific period of time. When there's a drought, the production of agricultural products will be very much affected, thereby causing a decrease in the quantity of farm products.

On the other hand, a good weather would cause an increase in the quantity of farm products and as a result of this, the supply curve would shift rightward because there's enough product to meet the customer's demands or needs.

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3 years ago
What is organization? Explain elements with definition.
SVETLANKA909090 [29]

Answer:

An organisation is a business that has grown so big that it earns a lot of money

Explanation:

7 0
3 years ago
Which best describes the difference between simple and compound interest
MA_775_DIABLO [31]

Answer:

Simple interest is paid on large, long-term loans, while compound interest is paid on small, short-term loans. Simple interest is paid on the principal and interest accrued, while compound interest is paid only on the principal.  Ask for details.

Explanation:

4 0
3 years ago
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