A corporate bond pays 3.60 percent interest. If you are in the 24 percent marginal tax bracket, what is your after-tax yield on this bond?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 7FPE: An investor in the 22 percent tax bracket is trying to decide which of two bonds to select: one is a...
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Answer? ? Financial accounting

A corporate bond pays 3.60 percent interest. If
you are in the 24 percent marginal tax bracket,
what is your after-tax yield on this bond?
Transcribed Image Text:A corporate bond pays 3.60 percent interest. If you are in the 24 percent marginal tax bracket, what is your after-tax yield on this bond?
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