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Author Question: If the risk-free rate decreases due to a shift in government policy, the required return goes up. ... (Read 27 times)

mmm

  • Hero Member
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on: Jul 10, 2018
If the risk-free rate decreases due to a shift in government policy, the required return goes up.
 
  Indicate whether the statement is true or false

Question 2

A municipal bond has a quoted yield of 5. If an investor has a 20 marginal tax rate, the bond's after-tax yield is
 
  A)
 
  4.00.
  B)
 
  5.00.
  C)
 
  6.25.
  D)
 
  7.25.


s.meritte

  • Sr. Member
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  • Posts: 306
Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

B


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