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An investment of $100,000 in safe 10-year corporate bonds yields an average of 12% per year, payable each year. The effective income tax rate is 30%, and infation will average 2% per yean of $100,000 be worth in 10 years in today's purchasing power after income taxes and infation are taken into account? The FW is S (Round to the nearest dollar)

An investment of $100,000 in safe 10-year corporate bonds yields an average of 12% per year, payable each year. The effective income tax rate is 30%, and infation will average 2% per yean of $100,000 be worth in 10 years in today's purchasing power after income taxes and infation are taken into account? The FW is S (Round to the nearest dollar)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An investment of $100,000 in safe 10-year corporate bonds yields an average of 12% per year, payable each year. The effective income tax rate is 30%, and inflation will average 2% per year of $100,000 be worth in 10 years in today's purchasing power after income taxes and inflation are taken into account? The FW is S (Round to the nearest dollar.)
Transcribed Image Text:An investment of $100,000 in safe 10-year corporate bonds yields an average of 12% per year, payable each year. The effective income tax rate is 30%, and inflation will average 2% per year of $100,000 be worth in 10 years in today's purchasing power after income taxes and inflation are taken into account? The FW is S (Round to the nearest dollar.)
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