What Stated Coupon Rate Would a Taxable Corporate Bond Have

question 61

Essay

What stated coupon rate would a taxable corporate bond have to have to be comparable to a municipal bond with a coupon rate of 7 percent if the investor is in the 28 percent tax bracket?

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Definitions:

Managers

Individuals or groups responsible for directing and overseeing the operations and strategies of a business or part of a business.

Readily Available

Something that is easily obtainable or accessible whenever needed.

Payback Period

The duration of time it takes to recoup the cost of an investment.