Bond if the bond matures in one year


Anne's marginal income tax rate is 30 percent. She purchases a corporate bond for $10,000 and the maturity, or face value, of the bond is $10,000. If the bond pays 5 percent per year before taxes, what is Anne's annual after-tax rate of return from the bond if the bond matures in one year?

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Accounting Basics: Bond if the bond matures in one year
Reference No:- TGS051497

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