Mandy purchased a 5-year bond a little over a year ago and recently sold it at $1100. He got $100 of interest income from the bond. Assuming a 30% ordinary tax bracket and 10% tax rate on capital gains, calculate the after-tax holding period return of the bond.

Answer rating: 100% (QA)

To calculate the aftertax holding period return of the bond we need to consider the interest income ... View the full answer