The yield to maturity of a bond having 4% coupon, having Face value of Rs 1000 and 30 year maturity falls to 7% by the end of first year and an investor sells the bond after the first year. If the investor's income tax rate is 38% and capital gains tax is 20%, what is the investor's after-tax rate of return?

The yield to maturity of a bond having 4% coupon, having Face value of Rs 1000 and 30 year maturity falls to 7% by the end of first year and an investor sells the bond after the first year. If the investor's income tax rate is 38% and capital gains tax is 20%, what is the investor's after-tax rate of return?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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