What is the yield on a corporate bond
Assignment:
The yield on a corporate bond is 10% and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 8.50% is available. Which security is a better buy?
Now Priced at $20 (50% Discount)
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Rated (4.5/5)
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The yield on a corporate bond is 10% and it is currently selling at par. The marginal tax rate is 20%.
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