Jessica has $10,000 invested in corporate bonds with a stated interest rate of 7 percent and $10,000

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Jessica has $10,000 invested in corporate bonds with a stated interest rate of 7 percent and $10,000 in tax-exempt municipal bonds issued for governmental activities with a stated interest rate of 7 percent. Calculate her after-tax cash flow from each investment if:
a. her marginal tax rate is 15 percent.
b. her marginal tax rate is 39.6 percent.
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Taxation For Decision Makers 2014

ISBN: 9781118654545

6th Edition

Authors: Shirley Dennis Escoffier, Karen Fortin

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