Anne’s marginal income tax rate is 20 percent.

Anne’s marginal income tax rate is 20 percent.

Anne’s marginal income tax rate is 20 percent. She purchases a corporate bond for $20,000 and the maturity, or face value, of the bond is $20,000. (Round your answers to 2 decimal places.)

a.	If the bond pays 8 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? b. What is her annual after-tax rate of return if the bond matures in 10 years?

Is this the question you were looking for? If so, place your order here to get started!