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A 5-year corporate bond yields 10.8 percent A 5-year municipal bond of equal risk yields 6.5 percent Assume that the state tax rate is zero At what federal tax rate are you indifferent between the two?
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What is Mid-Atlantic Corporate Federal Credit Union's swift code?
Ich suche eine internationale Banknummer (S.W.I.F.T.-Code) für eine Geldüberweisung von Deutschland nach USA . Die Bank ist die Mid- Atlantic Corporate Federal Credit Union Harrisburg PA.
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If corporate bonds issued by Johnson Corporation currently yield 8 Municipal bonds of equal risk currently yield 6 At what tax rate would an investor be indifferent between these two bonds?
To find the federal tax rate at which the buyer would be indifferent between Muni bonds(which are tax free) and Corporate bonds(which fall under your tax bracket tax rate) you follow this simple formula: Corporate Bond Yield=(Municipal bond Yield)/(1- Federal tax rate) In this case you would solve for the Federal Tax Rate and get an answer of .25 or 25% http://luhman.org/Nts/Bond/140_Municipals.html
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