Question
Someone has purchased two bonds at par value. One is a $1,000 Municipal Bond with a coupon rate of 4% and the other is a
Someone has purchased two bonds at par value. One is a $1,000 Municipal Bond with a coupon rate of 4% and the other is a $1,000 Corporate Bond with a coupon rate of 5%. He is in the 35% tax bracket. What are the after tax returns on the two bonds?
| A. | Municipal Bond is 2.6% and The Corporate Bond is 3.25%
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| B. | Municipal Bond is 2.6% and The Corporate Bond is 5%
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| C. | Municipal Bond is 4% and The Corporate Bond is 5%
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| D. | Municipal Bond is 4% and The Corporate Bond is 3.25%
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Elements Of Chemical Reaction Engineering
Authors: H. Fogler
6th Edition
9780135486221
