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Question
A bank currently owns a municipal bond paying a tax-exempt rate of 6.5%. If the banks marginal tax rate is 40%, what is the taxable equivalent yield?a. 3.90%
b. 10.83%
c. 9.10%
d. 4.64%
e. 9.32%
Answer
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Related questions
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Which of the following is not true regarding collateralized mortgage obligations (CMOs)?
a. Interest earned on CMOs is exempt from state income taxes.
b. CMO yields are generally higher than comparable Treasury yields.
c. CMOs exhibit little default risk.
d. All of the above are true.
e. Only a. and c. are true.
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a. Treasury bills
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c. common stock
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b. A Lubbock County general obligation bond to build a new sewer plant.
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c. reducing diversification when the economy is slowing down.
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e. all of the above
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Eurobonds are subject to fewer regulations than U.S. issued bonds.
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b. currencies in the future at a specified time at an unknown exchange rate.
c. currencies in the future at an unspecified time at an unknown exchange rate.
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Historically, what has prevented universal banks from operating in the United States?
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b. The Glass-Stegall Act
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Q:
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Q:
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b. mezzanine financing.
c. automobile financing.
d. seed money.
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Q:
Loan covenants:
a. protect the borrower from lender interference in management.
b. are limited to "negative" provisions.
c. may limit discretionary cash outlays by borrowers.
d. are seldom enforced.
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In the credit process, which of the following activities falls under Credit Execution and Administration?
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b. a loan against the repurchase agreement.
c. a risk-free guarantee.
d. the difference between the market value of the collateral and the amount of the loan.
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