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ABC BANK purchased a 7-year corporate bond that pays a coupon of 7.8%. The bank has a marginal tax rate of 25%. What is the

ABC BANK purchased a 7-year corporate bond that pays a coupon of 7.8%. The bank has a marginal tax rate of 25%. What is the after-tax yield on this bond?

1.95%

3.28%

4.10%

5.85%

6.28%

None of the options is correct

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