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Question 6 ( 1 0 pts ) True or False? For the 2 0 % tax bracket, the equivalent after - tax rate of an

Question 6(10 pts) True or False?
For the 20% tax bracket, the equivalent after-tax rate of an 8% corporate bond yield is
10%.
Relative to investment-grade bonds, junk bonds have a lower level of perceived default
risk and lower yield.
On a fixed-rate amortized mortgage, a large portion of the mortgage payment goes towards
the principal repayment during the early life of a mortgage loan.
Dual class stock refers to firms with both common and preferred stock outstanding.
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