A bond issued by the State of Pennsylvania provides a 5.75% yield. What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax rate of return to an investor in the 35.00% tax bracket

1 answer
Question:

A bond issued by the State of Pennsylvania provides a 5.75% yield. What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax rate of return to an investor in the 35.00% tax bracket

Answers

Answer: 8.85%Explanation:GIVEN THE FOLLOWING ;Municipal bond yield = 5.75%After-tax rate = 35%In other to produce the same after tax rate, What should be the yield of the synthetic company bond; Assume yield on synthetic company bond = SC yield ;We can connect our assumption using the mathematical relation below;Municipal bond yield = after tax bond yield5.75% = SC yield (1 - tax rate) 5.75% = SC yield (1 - 35%)5.75% = SC Yield × 65%SC yield = (5.75/65)%SC yield = 0.08846%SC yield = 8.85%

Similar Solved Questions

1 answer

I need sum help on this

I need sum help on this...
1 answer

Does this orders pair represent a function why or why not

Does this orders pair represent a function why or why not...
1 answer

What was the Maafa also know as?​

what was the Maafa also know as?​...
2 answers

What must occur before clouds can form?

What must occur before clouds can form?...
1 answer

In a competition a school awarded medals i different categories, 36 medals in dance, 12 medals in dramatics and 18 medals in music. If these medals went a total of 45 persons and only 4 persons got medals in all thr three categories, hk many received medals in exactly two of these categories?​

In a competition a school awarded medals i different categories, 36 medals in dance, 12 medals in dramatics and 18 medals in music. If these medals went a total of 45 persons and only 4 persons got medals in all thr three categories, hk many received medals in exactly two of these categories?​...
1 answer

About how much energy is lost with each transfer from one trophic level to the next? A. 90% B. 35% C. 10% D. 65% E. 0%

About how much energy is lost with each transfer from one trophic level to the next? A. 90% B. 35% C. 10% D. 65% E. 0%...
1 answer

Identify each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization. 1.Separate legal entity 2.Taxable entity resulting in additional taxes 3.Continuous life 4.Unlimited liability of owners 5.Government regulation 6.Separation of ownership and management 7.Ability to acquire capital 8.Ease of transfer of ownership

Identify each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization. 1.Separate legal entity 2.Taxable entity resulting in additional taxes 3.Continuous life 4.Unlimited liabi...
1 answer

Brianna work as a costumer service representative. She knows that the amounts of her yearly bonus is $155 but $2.50 is taken away for each customer complaint about her during the year . What is her bonus if there are 12 complaints about her in the year?

Brianna work as a costumer service representative. She knows that the amounts of her yearly bonus is $155 but $2.50 is taken away for each customer complaint about her during the year . What is her bonus if there are 12 complaints about her in the year?...
1 answer

What Three fraction with different denominators makes 1 1/2

What Three fraction with different denominators makes 1 1/2...
2 answers

Quick question What happens in a kidney transplant?​

Quick question What happens in a kidney transplant?​...
1 answer

Dollar is worth three and 3 1/2 kruneros. What is the value of 43 3/4 kruneros?

Dollar is worth three and 3 1/2 kruneros. What is the value of 43 3/4 kruneros?...
2 answers

How to write 89,207 in word form​

how to write 89,207 in word form​...
1 answer

Which digit would make this four digit number divisible by 3 with no remainders? 325__ 0 3 5 6

Which digit would make this four digit number divisible by 3 with no remainders? 325__ 0 3 5 6...
2 answers

The government provides a number of public safety services, including health inspections. workplace regulations. interstate transportation. law enforcement.

The government provides a number of public safety services, including health inspections. workplace regulations. interstate transportation. law enforcement....
1 answer

An owl is carrying a mouse to the chicks in its nest. It is 4.00 m west and 12.0 m above the center of the 30 cm diameter nest and is flying east at 2.50 m/s at an angle 32° below the horizontal when it accidentally drops the mouse. Will it fall into the nest? Find out by solving for the horizontal position of the mouse (measured from the point of release) when it has fallen the 12.0 m.

An owl is carrying a mouse to the chicks in its nest. It is 4.00 m west and 12.0 m above the center of the 30 cm diameter nest and is flying east at 2.50 m/s at an angle 32° below the horizontal when it accidentally drops the mouse. Will it fall into the nest? Find out by solving for the horizontal...
2 answers

Which describes how blood can be protective in nature?

Which describes how blood can be protective in nature?...
1 answer

BRAINLIEST TO THE FIRST CORRECT ANSWERImagine you are one of the Pilgrims and you are asked to sign the Mayflower Compact. Before you can get off the ship, you and a group of others must agree to live by 10 rules. What would these 10 rules be? What would the consequences be for breaking them? Would everyone, including children, have to follow the same rules and face the same punishments?

BRAINLIEST TO THE FIRST CORRECT ANSWERImagine you are one of the Pilgrims and you are asked to sign the Mayflower Compact. Before you can get off the ship, you and a group of others must agree to live by 10 rules. What would these 10 rules be? What would the consequences be for breaking them? Would ...
1 answer

Given f(x) = 4x - 6, evaluate f(3). A. 2 B. 1 C.12 D. 6

Given f(x) = 4x - 6, evaluate f(3). A. 2 B. 1 C.12 D. 6...

-- 0.011972--