James Bank has purchased a bank-qualified municipal bond with a coupon rate of 4.5%. The...
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James Bank has purchased a bank-qualified municipal bond with a coupon rate of 4.5%. The bank has had to borrow funds to make this purchase at a cost of 3.15%. The bank is in the 25% tax bracket. What is the net after-tax return on this bank-qualified municipal bond? Please show your work
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