after-tax return
Calculate the after-tax return of a 7.13 percent, 20-year, A-rated corporate bond for an investor in the 10 percent marginal tax bracket. Compare this yield to a 5.44 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 35percent marginal tax bracket. The after-tax return of a 7.13 percent, 20-year, A-rated corporate bond for an investor in the 10 percent marginal tax bracket is___%
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