A municipal bond you are considering as investment


A municipal bond you are considering as an investment currently pays a yield of 6.81 percent.

a. Calculate the tax equivalent yield if your marginal tax rate is 28 percent. (Round your answer to 3 decimal places. (e.g., 32.161))

Tax equivalent yield

b. Calculate the tax equivalent yield if your marginal tax rate is 21 percent. (Round your answer to 3 decimal places. (e.g., 32.161))

Tax equivalent yield %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A municipal bond you are considering as investment
Reference No:- TGS02288098

Expected delivery within 24 Hours