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The Woodland Park Bank has purchased a bank - qualified municipal bond with a yield of 6 . 0 % . This bank had to

The Woodland Park Bank has purchased a bank-qualified municipal bond with a yield of 6.0%. This bank had to borrow funds to make this purchase at a cost of 4.0%. Let 80% of the interest cost of funding this bond purchase be tax deductible. This bank is in the 25% tax bracket. What is the net after-tax return on this bank-qualified municipal bond?

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