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What is your after-tax return (in %s) on the corporate? From Prior: Assuming you have a 30% tax rate, what is the after-tax coupon payment
What is your after-tax return (in %s) on the corporate? From Prior: Assuming you have a 30% tax rate, what is the after-tax coupon payment (in $s) that you will receive? From Prior: You, as an investor, are comparing two bonds: a corporate and a municipal. They both have a face value (par) of $1,000 and a 4-year term to maturity. The corporate bond has an 8% annual coupon and an 8.5% yield to maturity. The municipal bond has a 6% coupon and a 5.75% yield to maturity.
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