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Ms. Pay, who has a 40.8 percent marginal tax rate on interest income ( 37 percent income tax +3.8 percent Medicare contribution tax), owns HHL
Ms. Pay, who has a 40.8 percent marginal tax rate on interest income ( 37 percent income tax +3.8 percent Medicare contribution tax), owns HHL corporate bonds in her investment portfolio. She earned $80,600 interest this year on her HHL bonds. Required: a. Compute her after-tax cash flow assuming that she received two semiannual cash payments of $40,300 each. b. Compute her after-tax cash flow assuming that she instructed HHL to reinvest her interest payments in additional bonds. c. Compute her after-tax cash flow assuming that the entire $80,600 represented amortization of OID. Complete this question by entering your answers in the tabs below. Compute her after-tax cash flow assuming that she instructed HHL to reinvest her interest payments in additional bonds. Note: Negative after-tax cash flows should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount. Ms. Pay, who has a 40.8 percent marginal tax rate on interest income ( 37 percent income tax +3.8 percent Medicare contribution tax), owns HHL corporate bonds in her investment portfolio. She earned $80,600 interest this year on her HHL bonds. Required: a. Compute her after-tax cash flow assuming that she received two semiannual cash payments of $40,300 each. b. Compute her after-tax cash flow assuming that she instructed HHL to reinvest her interest payments in additional bonds. c. Compute her after-tax cash flow assuming that the entire $80,600 represented amortization of OID. Complete this question by entering your answers in the tabs below. Compute her after-tax cash flow assuming that the entire $80,600 represented amortization of OID. Note: Negative after-tax cash flows should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount
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