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Virty [35]
2 years ago
8

You are considering an investment in a municipal bond that has a yield of 5 percent. Your tax rate is 25 percent. What is your t

axable equivalent yield
Business
1 answer:
chubhunter [2.5K]2 years ago
7 0

The taxable equivalent yield is 6.67%.

<u>Given Information</u>

Municipal bond has yield of 5%

Tax rate = 25 percent

Taxable equivalent yield = ?

  • The formula for use to derive the taxable equivalent yield is <em>{Current yield on municipal bond / (1-tax rate)</em><em>.</em>

Taxable equivalent yield = 5% / (1 - 25%)

Taxable equivalent yield = 0.05 / 0.75

Taxable equivalent yield = 0.06666666666

Taxable equivalent yield = 6.67%

Therefore, the taxable equivalent yield is 6.67%.

See similar solution here

<em>brainly.com/question/14951055</em>

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Answer:

D)3 points

Explanation:

When children are involved, seatbelt tickets may mean points.

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An economy in which more effort is devoted to the production of services than to the production of goods is called the:
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Sales $200,000 Net income 100,000 Depreciation 20,000 Interest 10,000 Taxes 5,000 What is the company’s operating profit margin?
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Answer:

57.5%

Explanation:

Data Provided:

Total Sales =  $ 200,000

The net income = $ 100,000

Depreciation = $ 20,000

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Taxes = $ 5,000

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or

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or

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Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts.
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Answer:

two (a) asset accounts

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two libability accounts

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two equity accounts

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Explanation:

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