What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 4.1 percent for an investor in the 28 percent marginal tax bracket?

If a taxpayer's marginal tax rate is 33 percent, what is the after-tax yield on a corporate bond that pays 5 percent interest? If the average marginal tax rate of all taxpayers is 50 per- cent, will the taxpayer with the 33 percent marginal tax rate prefer a corporate or a mu- nicipal security? Assume equivalent safety and maturity.

Calculate the​ after-tax return of​ a(n) 5.625.62 ​percent, 20-year,​ A-rated corporate bond for an investor in the 1515 percent marginal tax bracket. Compare this yield to​ a(n) 3.683.68 ​percent, 20-year,​ A-rated, tax-exempt municipal​ bond, and explain which alternative is better. Repeat the calculations and comparison for an investor in the 3535 percent marginal tax bracket.

1. You are in the 30% tax bracket (federal & state taxes combined). A corporate bond is yielding 9%. Assuming that all non-tax features (e.g. risk) are identical, what yield would a municipal bond ("Muni") have to offer in order for you to prefer it over the corporate?

b) You can invest in taxable bonds that are paying a yield of 9.50% or a municipal bond paying a yield of 7.75%. If your marginal tax rate is 21%, which security bond should you buy? Answer:

A municipal bond has a yield to maturity of 3.8 percent. What corporate bond yield would make  an investor in the 29 percent tax bracket indifferent between two bonds, all else the same?

Calculate the​ after-tax return of​ a(n) 5.625.62 ​percent, 20-year,​ A-rated corporate bond for an investor in the 1515 percent marginal tax bracket. Compare this yield to​ a(n) 3.683.68 ​percent, 20-year,​ A-rated, tax-exempt municipal​ bond, and explain which alternative is better. Repeat the calculations and comparison for an investor in the 3535 percent marginal tax bracket.       Question content area bottom Part 1 The​ after-tax return of the 5.625.62​%, ​20-year, A-rated corporate bond for an investor in the 1515​% marginal tax bracket is enter your response here​%. ​ (Round to two decimal​ places.) Part 2 Compare this yield to the 3.683.68​%, ​20-year, A-rated,​ tax-exempt municipal bond and explain which alternative is better.  ​(Select the best answer​ below.)     A. The after dash tax yield of 4.78 % for the corporate bond is a better alternative than the 3.68 % tax dash free municipal bondThe after-tax yield of 4.78% for the corporate bond is a better…

A corporate bond currently yields 8.70%. Municipal bonds with the same risk, maturity, and liquidity currently yield 5.50%. At what tax rate would investors be indifferent between the two bonds? (Round your final answer to two decimal places.) O 30.90% 33.10% 36.78% O 41.56% O 41.93%

Municipal bonds are yielding 4.4 percent if they are insured and 4.7 percent if they are uninsured. Your marginal tax rate is 28 percent and the inflation rate is 1.645%. Your equivalent taxable yield on the insured bonds is _____ percent and on the uninsured bonds is _____ percent. How would your answers change if your marginal tax rate falls to 13.5% and the inflation rate increases to 2.0639%? What would happen to the YTM of the uninsured bond if negative news was announced resulting in a decline in its credit rating? What would happen to the YTM of the insured bond if it suddenly lost its insurance?