Suppose that a corporate bond with a Baa credit ratingand five years to maturity has a yield to maturity of 8 %Suppose that the government of Udwellum which has a bAA credit rating, issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds Suppose that investors have a federal tax of 30 % .

Suppose that a corporate bond with a Baa credit ratingand five years to maturity has a yield to maturity of 8 %Suppose that the government of Udwellum which has a bAA credit rating, issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds Suppose that investors have a federal tax of 30 % Calculate the interest rate that udwellum should pay on its bonds if they will yield the same after tax rate of return to investors as comparable corp. bonds Show your work








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