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You have $10,000 invested in a five-year CD that promises 5 percent APR. It will mature four years from now. If you withdraw money from

You have $10,000 invested in a five-year CD that promises 5 percent APR. It will mature four years from now. If you withdraw money from the CD prior to maturity, the interest rate drops to 3 percent. (a) If you will pay 25 percent tax on the interest earnings, what is your after-tax yield on this investment, assuming you leave the money in the account to maturity?

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