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Homework answers / question archive / If a municipal bond pays and interest rate of 4% and the investor is in a 22% tax bracket, then what is the taxable equivalent yield? Compute the total return (dollar amount) based on the following: Shareholder buys 200 shares of stock for $20 per share
If a municipal bond pays and interest rate of 4% and the investor is in a 22% tax bracket, then what is the taxable equivalent yield?
Compute the total return (dollar amount) based on the following: Shareholder buys 200 shares of stock for $20 per share. One year later the shareholder sells all shares for $29 per share. In addition the shareholder received a total of $2 dividend per share.