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AAFM GLO_CWM_LVL_1 Exam - Topic 8 Question 27 Discussion

You are considering investing in a following bond:Your income tax rate is 34 percent and your capital gains tax is effectively 10 percent. Capital gains taxes are paid at the time of maturity on the difference between the purchase price and par value. What is your post-tax approximate yield to maturity on this bond?
D) 11.06%
A) 10.09%
B) 10.83%
C) 11.92%

AAFM GLO_CWM_LVL_1 Exam - Topic 8 Question 27 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 27
Topic #: 8
[All GLO_CWM_LVL_1 Questions]

You are considering investing in a following bond:

Your income tax rate is 34 percent and your capital gains tax is effectively 10 percent. Capital gains taxes are paid at the time of maturity on the difference between the purchase price and par value. What is your post-tax approximate yield to maturity on this bond?

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Suggested Answer: D

by Gary at May 05, 2022, 06:23 PM

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Rosendo
9 months ago
I’m not so sure about that, the capital gains tax complicates things!
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Gene
9 months ago
Definitely leaning towards option D.
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Nickolas
9 months ago
Wait, how do you even calculate the post-tax yield?
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Galen
9 months ago
I think option B sounds about right!
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Curtis
10 months ago
The bond's yield before tax is key to calculating the post-tax yield.
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Hailey
10 months ago
The primary objective is to assess the status of the competitor's risk profile. That makes the most sense to me in the context of an acquisition - we need to understand their risks and vulnerabilities before moving forward.
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Ty
10 months ago
I think we had a practice question where re-deploying the share.war file was suggested. It might be C?
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Gracie
10 months ago
Okay, I'm a bit confused here. Should I be using a try/catch block to handle any errors that might occur during the insert?
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Florinda
10 months ago
Okay, let's see. I remember from my studies that ZFS is the default file system, but UFS is also an option. And I think boot environments are a key feature, but I'm not sure about the details. I'll have to review my notes on this.
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