(Answered) Question - if i invests 200000 in a bond that pays 6

Accounting

Question - If I invests $200,000 in a bond that pays 6 percent interest, or $200,000 in a bond that pays 8 percent interest and my marginal tax rate is 25 percent.

1) What is the after tax rate of return for the 6% bond?

2) How much explicit tax will I pay on the 6% bond?

3) How much implicit tax will I pay on the 6% Bond?

4) How much explicit tax will I have on the 8% Bond?

5) What is the after tax rate on the 8% bond?

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