Suppose that a 3-year bond with an annual coupon of 4.250% has a price of 101.000 percent
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that a 3-year bond with an annual coupon of 4.250% has a price of 101.000 percent of par. An investor faces a tax rate of 22% on bond coupon interest. What is the after-tax yield on the bond? Answer as a whole number rounded to three decimal places, i.e., 1.727% as 1.727.
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date: