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Assume a corporate bond has the yield to maturity (YTM) of 10.8% and is taxable. Further assume that there is also a public bond that

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Assume a corporate bond has the yield to maturity (YTM) of 10.8% and is taxable. Further assume that there is also a public bond that has the yield of maturity (YTM) of 7.3%. What is the marginal tax rate here? 67.59%32.41%25.91%74.09% Question 24 2.5 pts Same facts as above: which of the following would be true if the tax rate is 15.43% ? The investor will prefer government bonds since it is free of taxation. The investor will prefer government bonds since the after-tax payoff will be higher. The investor will prefer corporate bonds since it is free of taxation. The investor will prefer corporate bonds because the affter-tax payoff will be higher

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