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Mr. Landon, who has the top tax rates (37% ordinary; 21% capital), owns LX corporate bonds in his investment portfolio. He earned $100,000 interest this

Mr. Landon, who has the top tax rates (37% ordinary; 21% capital), owns LX corporate bonds in his investment portfolio. He earned $100,000 interest this year on his bonds. Compute his before and after-tax cash flow assuming that:

He instructed LX to reinvest his interest payments in additional bonds.

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