An investor recently purchased a corporate bond which yields 11%. The investor is in the 34%...
An investor recently purchased a corporate bond which yields 11%. The investor is in the 34% combined federal and state tax bracket. What is the bond's after-tax yield? Round your answer to two decimal places.
Homework Answers
We see that the after tax yield of the bond is given as equal to=yield on bond*(1-tax rate)=11%*(1-34%)
=7.26%
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