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Question 9 6 pts And finally, you let her know the after-tax holding period return, to show her the effect of taxes on return rates
Question 9 6 pts And finally, you let her know the after-tax holding period return, to show her the effect of taxes on return rates in general. Compute the after-tax return of the following bond, which is bought at a premium. Round to two decimal places. Face Value = $100,000 Purchase price (Jan 1) = $120,000 First Coupon Payment (March 1) = $6,000 Second Coupon Payment (September 1) = $6,000 Sale price (December 31) = $114,000 Tax rate of holder = 20% 20.08% 12.00% 4.00% O none of the above
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