An investor whose marginal tax rate is 35% is anal
An investor whose marginal tax rate is 35% is analyzing a tax-exempt bond offering a yield of 5.40%. The tax-equivalent yield of the bond isclosest to:
A. 8.31%.
B. 3.51%.
C. 6.94%.
参考解答
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2024-11-14 18:03:24
Ans:A;C is correct becauseTax-equivalent yield= Tax-exempt yield/(1 – Marginal tax rate)= 5.40%/(1 – 0.35) = 8.31%
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