Question
Suppose that a 3-year bond with an annual coupon of 4.250% has a price of 101.000 percent of par. An investor faces a tax rate
Suppose that a 3-year bond with an annual coupon of 4.250% has a price of 101.000 percent of par. An investor faces a tax rate of 22% on bond coupon interest. What is the after-tax yield on the bond? Answer as a whole number rounded to three decimal places, i.e., 1.727% as 1.727.
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
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