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An investor in the 25% marginal tax bracket purchased a bond for $983, received $85 in interest, and then sold the bond for $955 after

An investor in the 25% marginal tax bracket purchased a bond for $983, received $85 in interest, and then sold the bond for $955 after holding it for six months. The tax rate for capital gains with holding periods in excess of one year is 15%. What are the pretax and posttax holding period returns?

A.

6.0%; 4.5%

B.

5.8%; 4.5%

C.

6.0%; 4.3%

D.

5.8%; 4.3%

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