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Business, 30.05.2020 23:02 firstone04kr

Calculate the after-tax return of a 12.9712.97 percent, 20-year, A-rated corporate bond for an investor in the 1515 percent marginal tax bracket. Compare this yield to a 10.6510.65 percent, 20-year, A-rated, tax-exempt municipal bond and explain which alternative is better. Repeat the calculations and comparison for an investor in the 3535 percent marginal tax bracket.

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Calculate the after-tax return of a 12.9712.97 percent, 20-year, A-rated corporate bond for an inves...
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