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please hurry there are three question answers for the question PART A (8 marks) April receives $60 every six months in interest income from her
please hurry there are three question answers for the question
PART A (8 marks) April receives $60 every six months in interest income from her bond investment. She paid $950 for the bond and it will mature in 7 years for $1,000. She can reinvest the semi-annual interest income at 4% compounded annually. Her salary is $83,000 a year. Her marginal tax rate is 40%, which is also the applicable tax rate on interest income. The tax rate on dividend income is 30%. The tax rate on capital gain income is 20%. HINT: The first 2 questions below are beforetax, the last one is after-tax. 1. What is her annualized HPR if she does not reinvest the interest income? (2 marks) 2. What is her annualized HPR If she reinvests the interest income? (2 marks) 3. What is her annualized HPR swww if she reinvests the interest income and taxes are paid annually? (4 marks) Step by Step Solution
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