Question: Refer to problem 9. If your marginal tax rate is 30%, and 50% of capital gains are taxable, what is the after-tax rate of return
Refer to problem 9. If your marginal tax rate is 30%, and 50% of capital gains are taxable, what is the after-tax rate of return on your bond investment?
In problem 9
You bought a 10-year, 5% coupon bond for $ 1,000 and sold it 1 year later for $1,100.
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