5 You want to purchase bonds with the total face value of $600,000 at the beginning of the 2023 fiscal year and hold them for several years. These bonds pay 6% coupon. Your marginal tax on interest income and capital gains is 30%, and your effective marginal tax rate on dividend income is 18%. Given this information, what is your best estimate for the realized after-tax income at the end of the 2023 fiscal year? A $33,600 B $30,800 $25,200 D $29,400 E $21,000 F

5 You want to purchase bonds with the total face value of $600,000 at the beginning of the 2023 fiscal year and hold them for several years. These bonds pay 6% coupon. Your marginal tax on interest income and capital gains is 30%, and your effective marginal tax rate on dividend income is 18%. Given this information, what is your best estimate for the realized after-tax income at the end of the 2023 fiscal year? $33,600 (B) $30,800 $25,200 $29,400 $21,000