Why are high-tax-bracket investors more inclined to invest in municipal bonds than low-bracket investors?

Q: What are the special tax features of (a) Treasury securities, (b) agency issues, and (c) municipal…

A: (a): Treasury securities - Interest paid on all types of treasury securities will be fully taxable…

Q: What tax treatment do individual investors generally prefer in stock redemptions? Why?

A: Under the process of stock redemption, entire redemption amount is considered as the part of taxable…

Q: how the zero-coupon rate bond provides return to the investor and gives the advantages to the…

A: A zero coupon bond is a fixed income security which is sold at a deep discount to its face value.…

Q: the ratio of municipal bond yields to corporate bond yields the cutoff tax bracket The the where…

A: Municipal bonds are attractive because they are tax exempt.. Hence, when comparing two bonds it is…

Q: Why do we need to issue municipal bonds? explain

A: Municipal bonds are bonds issued by the government to finance projects that will provide benefit to…

Q: Who are the major purchasers of “regular” preferred stock? How do tax considerationsaffect these…

A: Stocks are the company’s shares which the company issues to its shareholders to raise funds and…

Q: An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%,…

A: Municipal bonds are the debt securities issued by the state or central government and municipalities…

Q: he most tax-advantaged form of income for investors is Group of answer choices a. long-term capital…

A: Long-term capital gains and losses shall be the benefit or loss arising from the selling, for more…

Q: Discuss the issue of equity in taxes in the U.S. generally and in Texas specifically?

A: Texas has the second-largest economy within the u. s., with a gross state product of $1.8 trillion…

Q: How do you calculate the relative advantage of the debt given the highest corporate tax rate, the…

A: Relative Tax Advantage is tax savings made by firm by having debt in their capital structure and…

Q: How can tax law changes create incentives for investors to sell their properties to other investors?

A: Income property can be described by different means, including such leasing, as the asset bought or…

Q: What is the reason for renewed interest in not-for-profits corporations?

A: Non-profit corporation  owners do not make a profit. The money of a not-for-profit organisation is…

Q: your professor has taught you that because municipal bonds (or any other tax-saving) bond would…

A: The reduction in income tax rates would make the tax-exempt privilege for municipal bonds less…

Q: Explain the concept of Tax Deduction in WACC. Does this tax deduction make debt finance Cheaper Then…

A: WACC is the weighted average cost of equity, cost of debt and cost of preference capital.

Q: What is the American Opportunity tax credit?

A: For the first four years of higher education, the American Opportunity Tax Credit is a credit for…

Q: What is Curtis's after-tax rate of return on the city of Athens bond?

A: The correct answer is 9.25 percent.

Q: Vat tax - the popularity of this type of tax, the nature of this type of tax and the effect on…

A: Value Added Tax (VAT):  It is a consumption tax placed on manufactured goods, at whatever time value…

Q: Why might the general obligation bonds of a state yield a return different from revenue bonds issued…

A: The question is based on the concept of municipal bonds used as debt security by local government to…

Q: An investor is attempting to decide between the purchase of a tax-free municipal bond or a corporate…

A: The details given are: Tax rate @32% The yield of Municipal Bond: 2.2% Corporate Bonds: 3.1%…

Q: ost of capital versus investor yields. Also, explain the municipal bond interest in term

A: We know that there are two parties of corporate bond, one is issuer party that is known a company…

Q: The most tax-advantaged form of income for investors is

A: Ownership of an organization can be broken down into small parts or units also known as Shares.…

Q: Why do you think the Tax Reform Act of 1986 affected the desirability of investing in real estate…

A: The question is based on the impact of tax reform on long term investment in real estate.

Q: Briefly explain the income tax advantage of raising capitalby issuing bonds rather than by selling…

A: The most important difference between bonds and the capital stock is the difference in the tax…

Q: The profits from the sale of listed real estate investment trust ( REIT) shares are typically taxed…

A: EXPLANATION:- Capital Gains Taxation: Short Term Capital Gains (STCG) and Long Term Capital Gains…

Q: Do you think taxes affect the value of real estate versus other investments?

A: Tax:   A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…

Q: An investor is in a 30% tax bracket. If corporate bonds offer 9% yields, what must municipals offer…

A: The computation of after-tax yield on corporate bonds:

Q: What’s a muni bond, and how are these bonds taxed?

A: Municipal bonds also known as muni bonds are defined as debt securities which are issued by a…

Q: What is the reasoning behind the tax laws which allow investors of municipal bonds to not pay…

A: TAX is a charge levied by the government on the income earned by the personal or organisation.

Q: What are municipal bonds, and how are these bonds taxed?

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: escribe the types of investors who would select municipal bonds and why they would do so

A: A municipal bond is a financial security issued by a state, municipality, or county to fund capital…