If you face a 10% marginal tax rate, what is your after-tax return on each of the following bonds?
A 5% coupon semiannual corporate bond with 10 years to maturity,
currently selling for $880.
%
A 8% coupon semiannual corporate bond with 12 years to maturity, currently selling for $1,060.
%
A 7% coupon semiannual municipal bond with 3 years to maturity, currently selling for $1,044.
%
....
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