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after-tax return

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Calculate the​ after-tax return of a 7.13 ​percent, 20-year,​ A-rated corporate bond for an investor in the 10 percent marginal tax bracket. Compare this yield to a 5.44 ​percent, 20-year,​ A-rated, tax-exempt municipal bond and explain which alternative is better. Repeat the calculations and comparison for an investor in the 35percent marginal tax bracket. The​ after-tax return of a 7.13 percent, 20-year,​ A-rated corporate bond for an investor in the 10 percent marginal tax bracket is___%

 
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state lottery.

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ou and 11 coworkers just won ​$6 million ​(500,000.00 ​each) from the state lottery. Assuming you each receive your share over 19 years and that the state lottery earns a 7 percent return on its​ funds, what is the present value of your prize before taxes if you request the​ ‘up-front cash’​ option? ​(​Note: Also assume an ordinary annuity—payments made at the end of each​ period.) The present value of your prize before taxes if you request the​ ‘up-front cash’ option is ​$_____?

 
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credit cards

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Javier is currently paying ​$1,200 in interest on his credit cards annually.​ If, instead of paying​ interest, he saved this amount every​ year, how much would he accumulate in a​ tax-deferred account earning 12 percent over 10​, 15​, or 20​years? If, instead of paying​ interest, this amount was saved every year in a​ tax-deferred account earning 12 percent over 10 ​years,  the amount accumulated would be ​$____?

 
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interest

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A bond that matures in 17 years has a ​$1000 par value. The annual coupon interest rate is 11 percent and the​ market’s required yield to maturity on a​comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually?

 
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