Refer to problem 9. If your marginal tax rate is 30%, and 50% of capital gains are

Question:

Refer to problem 9. If your marginal tax rate is 30%, and 50% of capital gains are taxable, what is the after-tax rate of return on your bond investment?
In problem 9
You bought a 10-year, 5% bond for $ 1,000 and sold it 1 year later for $1,100.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...