Question 1 assume you are in the 35 percent tax bracket and, Ask an Expert

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Question: 1. Assume you are in the 35 percent tax bracket and purchase a 3.75 percent municipal bond. Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment.

2. Assume that three years ago you purchased a corporate bond that pays 5.8 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment?

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Category:- Basic Finance
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