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Assume that the taxable yield on a corporate bond is 9% and your personal tax rate is 40%. Calculate your after-tax yield on that corporate

Assume that the taxable yield on a corporate bond is 9% and your personal tax rate is 40%. Calculate your after-tax yield on that corporate bond?

a. 5.4%

b. 42%

c. 2.8%

d. 4.2%

e. none of the above are within 0.2%

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