A U.S. Treasury bond pays 8.4 percent interest. You are in the 22 percent tax bracket. The after-tax yield on this bond is 6.55%.

DON'T ROUND STEPS. 2 DECIMAL ANSWERS FOR ALL THE BELOW.

For bonds that have taxable yields, the after-tax yield is equal to the bond's return multiplied by one minus the tax rate.

If you face a 22% marginal tax rate, what is your after-tax return on each of the following bonds?

A 6.3% coupon semiannual corporate bond with 4 years to maturity, currently selling for $984. _%

A 8.8% coupon semiannual corporate bond with 3 years to maturity, currently selling for $1,065. _%

A 3.6% coupon semiannual municipal bond with 10 years to maturity, currently selling for $1,038.

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