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What else can I help you with?
How does the rate for muni bonds compare with money markets now?
Some muni bonds have better rates that money market accounts. They are a longer investments though and there can be some higher fees for early withdrawals.
What is the average rate of return of bonds?
9
What is the Current Rate of Return on Government Bonds?
Enclosed is a list of current rates on Government bonds. http://investment-income.net/rates/government-bonds-rate-page
What is the difference between yield and coupon rate?
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
What is the current risk-free rate of return on 1-year Treasury bonds?
0.15%
The investment option with the highest rate of return and highest degree of risk is?
junk bonds
If Cabell Corp bonds pay an annual coupon rate of 10 percent and the investors required rate of return is now 8 percent on these bonds what will be the price?
par value
If treasury bonds yield 6 percent and Carter's marginal income tax rate is 40 percent what yield on the Chicago municipal bonds would make Carter's treasurer indifferent between the two?
muni yield must equal 10% to be equal to the tax shield 6 percent of the treasury yield. 100(muni yield) = 100(t-yield)/(1-(marginal tax)) 100x = 100x .06/(1-.40) 100x = 100x .06/0.6 divide both side by 100 x = .06/0.6 x= 0.10 muni rate equals 10%
Which investment allows you to legally avoid or reduce income taxes?
Lots and lost have some type of this...whether it be never being taxable, like some State & Muni bonds, or deferring the tax, or being payable at a lower rate (capital gains rate). The return for the investment is normally lower by the effect of the tax advantage (generally figured at a high tax rate), than a corresponding investment that is fully taxable.
Do higher coupon bonds give a higher rate of return?
according to the come rates the returns we get if we purchase higher rated coupon bonds we get higher returns
If corporate bonds issued by Johnson Corporation currently yield 8 Municipal bonds of equal risk currently yield 6 At what tax rate would an investor be indifferent between these two bonds?
To find the federal tax rate at which the buyer would be indifferent between Muni bonds(which are tax free) and Corporate bonds(which fall under your tax bracket tax rate) you follow this simple formula: Corporate Bond Yield=(Municipal bond Yield)/(1- Federal tax rate) In this case you would solve for the Federal Tax Rate and get an answer of .25 or 25% http://luhman.org/Nts/Bond/140_Municipals.html
Are some municipal bonds taxable?
Yes, it should be reported on your tax return. In general, interest from a municipal is not taxable, but it could affect other items on your return, or be taxable in your state. Proceeds from the sale of a muni bond could be taxable if there is a gain on the sale. This question is too complex to be fully answered in this forum. As always, consult with a tax professional for specific answers. CPA Greg
