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A $10,000 commercial bond that has a 6% bond rate and matures in 5 years can be purchased for $11,000. Interest is paid at the
A $10,000 commercial bond that has a 6% bond rate and matures in 5 years can be purchased for $11,000. Interest is paid at the end of each year for the next 5 years. Find the annual after-tax rate of return of this investment. Assume a 35% tax rate applies. Contributed by D. P. Loucks, Cornell University
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