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If you face a 22% marginal tax rate, what is your after-tax return on each of the following bonds? A 4.5% coupon semiannual corporate bond
If you face a 22% marginal tax rate, what is your after-tax return on each of the following bonds?
A 4.5% coupon semiannual corporate bond with 14 years to maturity, currently selling for $780. %
A 7.5% coupon semiannual corporate bond with 9 years to maturity, currently selling for $1,160.
% A 6.5% coupon semiannual municipal bond with 2 years to maturity, currently selling for $1,104. %
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