Mom and Pop had a portfolio of long term bonds that they purchased many years ago The bonds pay 12 interest annually, and the face value is $100,000 If Mom and Pop are in the 25 tax bracket, what is their annual after tax HPR on this investment (Assume it trades at par ) ...

Mom and Pop had a portfolio of long-term bonds that they purchased many years ago. The bonds

Question:

Mom and Pop had a of long-term bonds that they purchased many years ago. The bonds pay 12% interest annually, and the is $100,000. If Mom and Pop are in the 25% tax bracket, what is their annual after-tax HPR on this investment? (Assume it trades at par.)
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...