Hi!

I wonder if somebody can help me with this problem? Thank you so much for your help. It is really appreciated!

Taxpayer Y, who has a 15 percent marginal tax rate, invested $50,000 in a bond that pays 9 percent interest on a yearly basis. Compute Y's annual net after-tax cash flow from this investment assuming that: First take 9 percent times 50 thousand dollars a) The interest on the bond is tax-exempt. b) The interest on the bond is taxable