Question: Part 4 A. What is the the difference in before tax yield between the following investments for an investor in the 20 marginal tax rate?
Part 4
A. What is the the difference in before tax yield between the following investments for an investor in the 20 marginal tax rate?
- a 100,000 par value sold with a 5% discount that matures in 109 days
- a 5.6% municipal bond
B. What is the price of a 8.50% coupon rate bonds that matures in 4 years if market interest rate is 14%?
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