A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years? Round your answer to the nearest cent. [Hint- A=P e^rt where P= present(initial) value, A= future value, r= annual
You can invest your money in a taxable corporate bond paying 10% interest or a tax-free municipal bond paying 7% interest. Which would pay the higher after tax interest if you are in the 28% tax bracket?
Mr. Brown is in the 10% federal income tax bracket and wants to invest $8,000 in interest-earning assets. Mr. Black is in the 35% bracket and wants to invest $15,000. The current rate on a typical high-quality tax-exempt municipal
As of July 26, 2011, the interest rate for a 20 year, A-rated Municipal bond was 5.0%. Assuming that your marginal tax rate is 25%, what would be the tax free equivalent rate on an A-rated, 20 year corporate bond?
HELP! WHICH IS THE HIGHEST RISK INVESTMENT? List the following stocks and bonds in order from highest default risk to lowest default risk: A municipal bond in a city with a population of 150,000 A common stock in a company under
company issuing $1,000 par value bond that pays 7% annual interest maturing in 15 yrs. Investors willing to pay $958 for bond. Flotation cost 11% of market value and tax rate 18%. What will be theafter-tax cost of debt?