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What is the after-tax yield on a corporate bond offering a yield of 7.5%, assuming the investor is in the 40% income tax bracket? Options:

What is the after-tax yield on a corporate bond offering a yield of 7.5%, assuming the investor is in the 40% income tax bracket?

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A. 4.50%

B. 42.5%

C. 8.33%

D. 7.50%

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