Calculate the treasury bond after-tax yield

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Reference no: EM132017225

A bank is considering two securities: a 30-year Treasury bond yielding 4 percent and a 30-year municipal bond yielding 3 percent.

a. If the bank’s tax rate is 35 percent, calculate the Treasury bond's after-tax yield. (Round your answer to 1 decimal place. (e.g., 32.1))

After-tax yield %

Reference no: EM132017225

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