A taxable corporate issue yields 6.7 percent. For an investor in a 35 percent ta

Question

A taxable corporate issue yields 6.7 percent. For an investor in a 35 percent tax bracket, what is the equivalent aftertax yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

A taxable corporate issue yields 6.7 percent. For an investor in a 35 percent tax bracket, what is the equivalent aftertax yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

after tax yield = yield * (1 - tax rate ) = 6.7 * ( 1 - .35 ) = 4.355%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.