A City of Tempe muni bond has a yield of 3.4%.
1.What is the tax equivalent yield for an investor in the 25% tax bracket compared to an investor in the35% tax bracket?
2.What would you be willing to pay for a $1000 par, 6% coupon bond with 15years until maturity if you wanted to earn a return of 7%? What if you only needed to earn a return of 5%? What if you wanted to earn 6%?
3.If you purchase a $1000 par value bond for $1025 that has a 7 5/8% coupon rate and 15 years until maturity, what will your annual return be?
4.Built rite bonds have the following: 7½ % coupon, 14 years until maturity and are currently selling at $984.
a)If you purchase the above bond, what would be your AYTM?
b)If you want to make an 8% return, what would you be willing to pay?
c)Built rite sold 15 year, zero coupon bonds yielding 5%. What did they sell for?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more