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What is anne annual after-tax rate of return

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Anne's marginal income tax rate is 18 percent. She purchases a corporate bond for $25,000 and the maturity, or face value, of the bond is $25,000. (Round your answers to 2 decimal places.)

a. If the bond pays 6.2 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?

ANNUAL AFTER TAX RATE OF RETURN___?

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

ANNUAL AFTER TAX RATE OF RETURN___?

Reference no: EM132168987

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