Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Client has asked you to examine given investment alternatives for highest after-tax rate of return under supposition that client is subject to 28% marginal federal income tax and 5% state income tax.

i) Corporate bond with a 7% pretax return

ii) Out-of-state municipal bond with a 5.75% pretax return

iii) In-state municipal bond with a 5.5% pretax return.

2) Your financial planner has just finished the examination of your fixed-income holdings. He has found out each of your after-tax yields, but is cautioning you that tax implications of your holdings could alter if Congress alters marginal tax rates. Based on given after-tax yields, which of these bonds would present greatest after-tax return if your federal marginal tax bracket better from 25% to 30%, as your state marginal bracket remained 4.5%?

i) Corporate bond with a 5.1% after-tax return

ii) Out-of-state municipal bond with a 5.0% after-tax return

iii) In-state municipal bond with a 4.8% after-tax return

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914160

Have any Question? 


Related Questions in Basic Finance

Adama is a french manufacturer of photovoltaic panels the

Adama is a French manufacturer of photovoltaic panels. The company has a production plant in Rennes, which supplies four warehouses located in Angers, Bourges, Clermont-Ferrand and Montauban. The warehouses directly supp ...

Bob entered into a land contract to purchase real estate

Bob entered into a land contract to purchase real estate from Sam. The purchase price was to be paid over a 10-year period by monthly amortization. At the end of five years, Bob defaulted, having failed to make his requi ...

Explain the difference between path-dependent options and

Explain the difference between path-dependent options and path-independent options and give examples of each ? Give an example of a situation in which someone might wish to use a barrier option ? Explain the advantages a ...

1 explain why the priorities for liquidation are determined

1. Explain why the priorities for liquidation are determined as they are. Do you agree with the order? 2. What is the difference between economic failure and financial distress? Which situation is likely to lead to liqui ...

A hedge fund is currently engaged in a plain vanilla euro

A hedge fund is currently engaged in a plain vanilla euro swap in which it pays euros at the euro floating rate of Euribor and receives euros fixed. It would like to convert this position into one in which it pays the re ...

Discussion questionliabilities please respond to the

Discussion Question "Liabilities" Please respond to the following: • Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $ ...

1 why do researchers use inferential statistics2

1. Why do researchers use inferential statistics? 2. Distinguish between the null hypothesis and the experimental hypothesis. 3. When analyzing data, why do researchers test the null hypothesis rather than the experiment ...

In fig 911 is intermediate code to compute the dot product

In Fig. 9.11 is intermediate code to compute the dot product of two vectors A and B. Optimize this code by eliminating common subexpressions, performing reduction in strength on induction variables, and eliminating all t ...

Push for year end sales-ethicalthe boyer company

Push for Year End Sales-Ethical? The Boyer Company manufactures snow blowers. It has been a warm fall and sales have declined materially. This has resulted in a buildup of inventory. Required a. In early December the Boy ...

It is essential that you have a solid grounding in the

It is essential that you have a solid grounding in the academic theories of investing. In your final assignment, compare and contrast the academic theories of investing covered in your required readings with the philosop ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen