A 10000 commercial bond that has a 10 bond rate and matures, Ask an Expert

Economics

A $10,000 commercial bond that has a 10% bond rate and matures in 5 years can be purchased for $8000. Interest is paid at the end of each year for the next 5 years. Find the annual after-tax rate of return of this investment. Assume a 35% tax rate applies. Contributed by D. P. Loucks, Cornell University

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Business Economics, Economics

Category:- Business Economics
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