Calculate the after-tax return of a 8.63 percent, 20-year, A-rated corporate bond for an investor...
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Calculate the after-tax return of a 8.63 percent, 20-year, A-rated corporate bond for an investor in the 15 percent marginal tax bracket. Compare this yield to a 6.48 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 33 percent marginal tax bracket The after-tax rotum of a 8.63 percent, 20-year, A-rated corporate bond for an investor in tho 15 percent marginal tax bracket is % (Round to two decimal places)
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