Question: pls show simple equation Suppose that the yield to maturity of the 4% coupon, 30 -year maturity bond falls to 7% by the end of
Suppose that the yield to maturity of the 4% coupon, 30 -year maturity bond falls to 7% by the end of the first year and that the investor sells the bond after the first year. If the investor's federal plus state tax rate on interest income is 38% and the combined tax rate on capital gains is 20%, what is the investor's after-tax rate of return? Suppose that the yield to maturity of the 4% coupon, 30 -year maturity bond falls to 7% by the end of the first year and that the investor sells the bond after the first year. If the investor's federal plus state tax rate on interest income is 38% and the combined tax rate on capital gains is 20%, what is the investor's after-tax rate of return
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