Before$-$ and after$-$tax returns

Consider a bond with a before$-$tax coupon rate of $8\mathrm{.}5\%.$

Complete the following table by calculating the after$-$tax rate of return for three different marginal tax rates. $($Note: Round your answers to the

nearest hundredth.$)$

True or False: The after$-$tax rate of return increases with the marginal tax rate.

True

False