Question
Carla has $20,000 invested in corporate bonds with a stated interest rate of 6 percent and $20,000 in tax-exempt municipal bonds issued for governmental activities
Carla has $20,000 invested in corporate bonds with a stated interest rate of 6 percent and $20,000 in tax-exempt municipal bonds issued for governmental activities with a stated interest rate of 5 percent. What is her annual after-tax cash flow from interest income for each investment if her marginal tax rate is 24%?
$1,000 from the municipal bonds and $912 from the corporate bonds
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$1,000 from the municipal bonds and $1,200 from the corporate bonds
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$760 from the municipal bonds and $912 from the corporate bonds | ||
$760 from the municipal bonds and $1,200 from the corporate bonds |
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