The amount of interest that will be paid in the first 5 years is $120.00
3.70 and 3.700 are some examples to get you started.
The tax bracket and tax-free yield will be (18%, 3%) < (32%, 3%) < (32% , 4%) < (22% , 5%) < (24% , 6%) .
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Taxable equivalent yield based problem:</h3>
The taxable equivalent yield will be:
= Tax-free yield / (100 - Tax bracket)
Taxable equivalent yield = 3 / (100 - 18) = 0.03659
Taxable equivalent yield = 6 / (100 - 24) = 0.07895
Taxable equivalent yield = 3 / (100 - 32) = 0.04412
Taxable equivalent yield = 5 / (100 - 22) = 0.06410
Taxable equivalent yield = 4 / (100 - 32) = 0.05882
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Answer:
2
Step-by-step explanation:
