Quiz1_722_Review_Winter2010

Quiz1_722_Review_Winter2010 - • Consider a 1-year T-bill...

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Review Questions If your marginal tax rate is 31%, do you prefer a corporate bond with a yield to maturity of 5%, or a municipal bond with a yield of 4%? If your marginal tax rate is 11%, do you prefer a corporate bond with a yield to maturity of 2%, or a municipal bond with a yield of 1%?
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Unformatted text preview: • Consider a 1-year T-bill with a face value of $10,000. If you buy the bill for $9,700, how much money will you make in percentage terms? • Define the following concepts: Real assets, Financial assets. Give two examples of real assets, and two examples of financial assets. 2...
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This note was uploaded on 11/20/2011 for the course FINANCE 640,722 taught by Professor Chabiyo,reeves during the Fall '11 term at Ohio State.

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