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sashaice [31]
3 years ago
14

An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals

offer for the investor to prefer them to corporate bonds?
Business
1 answer:
Yuki888 [10]3 years ago
7 0

Answer:

0.063 or 6.3% (or more)

Explanation:

Given:

Combined Tax Bracket = 30% = 30/100 = 0.30

Yields of corporate Bonds = 9% = 9/100 = 0.09

Yield to Shift Investors to choose municipal bonds = ?

Calculation:

Yield from corporate bond = (After tax yield) x Yield rate of corporate Bonds

                                              = (0.70) x (0.09)

                                              = 0.063 or 6.3%

Working note:

After tax yield = (1 - tax rate )

After tax yield = (1 - 0.30 )

After tax yield = (0.70)

so, they must give 6.3% yield

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Wind damage occurs to your car costing $800 to repair. If you have a $500 deductible for collision and full coverage for compreh
Igoryamba

Answer:

$300

Explanation:

Deductible referred to as the amount paid from one's pocket to join the amount of one's loss, while the insurance company balance up the remaining.

The loss which is $800 is a little bit more than deductibles.

Damage=$800

Deductibles=$500

The damages is just $300 more than deductibles.

As stated in the question there is a collision and comprehensive insurance for the driver , therefore the driver will pay $500 from his own pocket.

THE PORTION OF CLAIM THE INSURANCE COMPANY PAY =($800-$500)=$300

$300 will only be received from the company.

In Higher deductibles the premium insurance is reduced in cost.

In lower deductibles there is higher premium but with the cost from one's pocket is low.

Deductible has influence on

one's claim.

Comprehensive insurance is one of automobile insurance,it covers damages or event that occurs to a car that is out of one's control.It covers for replacement or repairment of one's car if damaged by something or to repair bit, other a collision.

Comprehensive insurance can cover up for

theft ,natural disasters or from fire incident.

5 0
3 years ago
Read 2 more answers
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of
statuscvo [17]

Answer and Explanation:

If demand is greater than supply, then there is inflation. Hence, the government has to devaluate its currency on net borrowings from abroad. Supply increases and price becomes stable.

The banks have to lower their bank rate and decrease CRR. When prices rise, consumption decreases and investment increases. When the interest rate is made high consumption and investment both become stable. Hence, there is full employment. Government has a fiscal policy to increase taxes and borrowings and increase the export and income rises and price becomes stable.

6 0
3 years ago
Blue Inc., a highly profitable consumer goods manufacturing company, invests in a number of social responsibility initiatives th
rewona [7]

Answer:

Virtuous Circle

Explanation:

Virtuous circle occurs when one good events feeds on itself to improve business further. In the question, blue inc. invested in social responsibilities initiative (a good event) which on turn generated profits for the company (improved the business), probably by the event leading them to having more loyal customers.

It is a self propagating advantageous situation in which a successful solution or events leads to more desired results or success. It creates a positive feedback loop, creating goodwill with the customers.

5 0
2 years ago
Three cards are drawn from a deck without replacement. Find these probabilities. a. All are jacks. b. All are clubs. c. All are
AVprozaik [17]

There are 4 jacks in the deck.

13 are clubs and 26 are all red cards.

The computation for the following problems are shown below:

a.       All are jacks

Computation: 4/52 * 3/51 * 2/50 = 1/5525

b.      All are clubs

Computation: 13/52 * 12/51 * 11/50 = 11/850

c.       All are red card

Computation: 26/52 * 25/51 * 24/50 = 2/17

6 0
3 years ago
IBN has two manufacturing facilities, one in New York and one in Oklahoma. Marjorie has worked in the Oklahoma plant for 15 year
gtnhenbr [62]

Answer:

Yes, there is a violation of the Equal Pay Act because Hank's salary ($14 per hour) is higher than Marjorie's ($12 per hour).

Explanation:

The Equal Pay Act of 1963 basically establishes that no employer can pay a higher salary to an employee of one sex and pay a lower salary to an employee of the opposite sex. Theoretically this law protects both women and men, since the provision doesn't establish a specific sex that is protected.

In this case, it is OK for Ellen to earn a higher salary than Hank because she has more experience and she was transferred to the New York facility. But Hank shouldn't earn a higher salary than Marjorie because she is a more experienced worker.

This law doesn't consider the differences between Ellen's salary and Marjorie's.

3 0
3 years ago
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