1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
The aggregate demand curve shows a _____ relationship between _____ and _____ at a given spending growth.
rewona [7]

The aggregate demand curve shows a relationship between aggregate price level and demand at the given spending growth.

<h3>What is demand?</h3>

Demand is explained as the requirement of a certain product in the market, usually this demand is varied if the prices are changed and the demand also is impacted by the supply.

If the prices are high it is highly likely that the demand of that product will reduce if the product is not a necessity.

If the prices are lower the demand for the product will increase.

Learn more about demand and supply at brainly.com/question/27305760

#SPJ1

5 0
1 year ago
a car travaling at a speed of 24 m/s comes to a stop at a red light how much time will it take for the car to stop if it's excel
RideAnS [48]
Answer: The answer is 3 seconds

Explanation: because 24 divided by 3 is 8. Eight must be subtracted 3 times from 24 in order to reach 0.
6 0
3 years ago
Which of the following costs do not vary with the amount of output a firm produces? a. average fixed costs b. fixed costs and av
Harrizon [31]

Answer:

d. fixed costs

Explanation:

The fixed cost is the cost which does not change if there is a change in the level of production i.e if the production level is increased or decreased it the fixed cost would remain the same as it is previous before

Therefore according to the given situation, since the fixed does not vary with the amount of firm output

Hence, option d is correct

4 0
3 years ago
Zipcar car rentals is an example of a type of innovation that is similar to product innovation except that this innovation relat
andrew-mc [135]

Zipcar car rentals is an example of a type of innovation that is similar to product innovation except that this innovation relates to services.

Product innovation is the introduction of a new or improved good or service.  This improvements may be functional, technical and so on.

Service innovation is similar to product innovation except that this innovation relates to services.

Find out more at: brainly.com/question/17218280

6 0
2 years ago
A cost estimation tool which is used to allocate money into an organization’s budget is known as a _____ estimate. a. ballpark b
xenn [34]

Answer:

  B. Budgetary.

Explanation:

  They are used to do that because the range of variance could be from -10% to +20%.

  Although this, it is not accurate enough to provide a solid basis for a firm commitment because it only represents an approximation of what is need to be done.

  I hope this answer helps you.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Judith puts $5000 into an investment account with interest compounded explain continuously. which approximate annual rate is nee
    12·1 answer
  • An approach to combining risk identification, risk assessment, and risk appetite into a single strategy. is known as risk protec
    8·1 answer
  • Kasen just completed his second year of college in education. He is not sure if this is the best career choice for him. He wants
    5·2 answers
  • A proposed project has fixed costs of $47,000 per year. The operating cash flow at 11,000 units is $69,000. a. Ignoring the effe
    7·1 answer
  • Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.
    5·1 answer
  • Choose all that apply. Select all of the tools you could use to track your expenses.
    12·1 answer
  • When you have an exclusive contract with a real estate agent, what should you expect and not expect?
    9·1 answer
  • Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been cl
    12·1 answer
  • How has the u.s. fish and wildlife service positively impacted ecosystems? a. by regulating private land use b. by conserving wi
    11·1 answer
  • as the industrial revolution came to the united states, most firms operated in a(n) orientation. a. evolutionary b. societal c.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!