If a municipal bond with a coupon of 5.0 percent sells for $1,000., what coupon rate on a corporate bond selling at its $1,000 par value would produce the same after-tax return to the investor as this municipal bond if the investor is in the 32 percent tax bracket? In other words, what is the taxable equivalent yield of this municipal bond?

2. A firm's cost of goods sold is $52,143 and its average inventory is $10,281. What is the firm's approximate inventory period?

Answer rating: 100% (QA)

For the first question to find the taxable equivalent yield of the municipal bond we need to con... View the full answer