An investor purchases a 10-year us government bond for 800


Question - An investor purchases a 10-year U.S. government bond for $800. The bond's coupon rate is 10 percent and, at time of purchase, it still had five years remaining until maturity. If the investor holds the bond until it matures and collects the $1,000 par value from the Treasury and his marginal tax rate is 28 percent, what will his after-tax yield to maturity be?

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Accounting Basics: An investor purchases a 10-year us government bond for 800
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