The Vermont General Bank has purchased a bank-qualified municipal bond with a coupon rate of 10%. The bank had to borrow the funds (took a loan) to make this purchase at a cost of 4% (the loan rate was 4%). Assume they can deduct 80% of the interest expenses from this loan from their taxable income. The bank is in the 24% tax bracket. What is the net after-tax return on this bank-qualified municipal bond? Type you answer as percentage and not as decimals (i.e. 5.2 and not 0.052). Round your answer to the nearest two decimals if needed. Do not type the % symbol.

The Vermont General Bank has purchased a bank-qualified municipal bond with a coupon rate of 10%. The bank had to borrow the funds (took a loan) to make this purchase at a cost of 4% (the loan rate was 4% ). Assume they can deduct 80% of the interest expenses from this loan from their taxable income. The bank is in the 24% tax bracket. What is the net after-tax return on this bank-qualified municipal bond? Type you answer as percentage and not as decimals (i.e. 5.2 and not 0.052). Round your answer to the nearest two decimals if needed. Do not type the \% symbol