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Business, 20.03.2020 04:56 lindseyreneesmith7

A municipal bondholder buys a 5 percent coupon annual payment muni bond at a price of $4,900. The bond has a $5,000 face value. In one year she sells the bond for $4,975. The appropriate capital gains tax rate is 15 percent and her ordinary income tax rate is 28 percent. What is her after-tax rate of return?

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A municipal bondholder buys a 5 percent coupon annual payment muni bond at a price of $4,900. The bo...
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