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Assuming that you are in the 40% tax bracket. a. What would be the after tax yield on a $100 taxable bond issued by HCA,
Assuming that you are in the 40% tax bracket.
a. What would be the after tax yield on a $100 taxable bond issued by HCA, that carries a 10% interest rate?
b. If you had the option to purchase a $100 tax exempt bond issued by BayCare, with a 7% interest rate, would you make more money than the HCA bond? (Show all your work.)
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