FIN 612 (FIN 612)

-1) An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracket. What is the bond’s after-tax yield? 2-2) Corporate bonds issued by Johnson Corporation currently yield 8%. Municipal bonds of equal risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds? 2-7) The Talley Corporation had a taxable income of $365,000 from operations after all operating costs but before (1) interes...