An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined

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An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracket. What is the bond’s after-tax yield?

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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Question Posted: Sep 23, 2011 11:04 AM

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An investor recently purchased a corporate bond which yields 9 percent. The investor is in the 36 percent combined federal and state tax bracket. What is the bonds after-tax yield?
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An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined

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