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Municipal-Bonds-Arbitrage-Calculator

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					Municipal Bond Arbitrage Calculator
                                                    Data Inputs
                                     Face Value     Coupon Rate Total Number of Bonds
   Corporate Bond Price            $        100.00           2.00%         50.00
   Municipal Bond Price            $      5,000.00           5.00%          1.00
   Tax Rate (R)                            25.00% Margin Rate             2.00%
                                      Retruns
   Municiapl Bond Interest
                                            $250.00
   Income (on Long Bond)
   Borrowed Funds on Margin        $        5,000.00
   Margin Cost on the Corporate
                                           ($100.00)
   Bond Short
   Distribution Pay-Out on the
                                           ($100.00)
   Corporate Bond Short

                                  Data Inputs - End of the Period
                                     Face Value
   Corporate Bond Price            $          100.00
   Municipal Bond Price            $       5,000.00


   Capital Gain/Loss from Bond      $               -



                                                        Total Arbitrage
                                                                           $   50.00
                                                        Return
                                                        % Arbitrage
                                                                               1.00%
                                                        Return on Equity




   White Space Require Data       Red Boxes Equal
                                                  *base on 1-year holding period
   Input                              Results
umber of Bonds
After Tax Equivalent Yield Calculator, Solver
                                                        2012                                           Tax Rates
                                                   Ordinary Income   Long-term Capital Gain Short-term Capital   Long-term Gain on
     Municipal Yield (Ym)                 5.00%         Rate                 Rate               Gain Rate           Real Estate*
                                                        10%                             0%                10%                  10%
     Tax Rate (R)                        25.00%         15%                             0%                15%                  15%
                                                        25%                            15%                25%                  25%
                                                        28%                            15%                28%                  25%
                                                        33%                            15%                33%                  25%
     Corporate After Tax
                                  6.67%
                                                        35%                            15%                35%                  25%

     Equivalent Yield (Yc)




                             White Space Require
                             Data Input
                             Red Boxes Equal
                             Results
     Tax Rates
 erm Capital   Long-term Gain on   Long-term Gain
ain Rate          Real Estate*     on Collectibles
        10%                  10%              10%
        15%                  15%              15%
        25%                  25%              25%
        28%                  25%              28%
        33%                  25%              28%
        35%                  25%              28%
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