question 20

Assume a corporate bond has the yield to maturity (YTM) of 10.5% and is taxable. Further assume that there is also a public bond that has the yield of maturity (YTM) of 7.3%. What is the marginal tax rate here? O 23.36% O 42.25% O 51.92% O 30.48% Question 20 2.94 pts Same facts as Question 19: which of the following will be true if the tax rate is 25.24%? O The investor will prefer government bonds since it is free of taxation. O The investor will prefer government bonds since the after-tax payoff will be higher. O The investor will prefer corporate bonds since it is free of taxation. O The investor will prefer corporate bonds because the after-tax payoff will be higher