Question
A zero coupon corporate bond has a par value of $10000, a current price of $6000 and 8 years to maturity. If a municipal
A zero coupon corporate bond has a par value of $10000, a current price of $6000 and 8 years to maturity. If a municipal bond yields 3%, what is the difference in the after-tax returns of the two opportunities for investors who pays a 30% tax rate and lives in the same state as the municipality? Enter your answer as a percentage to one decimal with no % sign.
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
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