Solutions to in-calss exercises_Chapter 4

# Solutions to in-calss exercises_Chapter 4 - yield...

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1 Solution to in-class exercise 1   Answer  C

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2 Solution to in-class exercise 2 points basis 50 0.5% 6% - 6.5% spread yield Absolute 1.0833 X bond on yield bond reference the on Yield bond reference the on yield X bond on yield ratio Yield = = = = = = = = % 6 0833 . 1 % 5 . 6 0833 . 1
3 Solution to in-class exercise 3   Answer  A 30% or 0.3 0.7 - 1 rate tax Marginal

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Unformatted text preview: yield equivalent taxable yield bond exempt tax rate tax marginal rate tax marginal-1 yield bond exempt tax yield equivalent Taxable = = ∴ = = =-∴ = 7 . % 8 % 6 . 5 1 4 Solution to in-class exercise 4 Answer A...
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Solutions to in-calss exercises_Chapter 4 - yield...

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