Problem
A $10,000 commercial bond that has a 10% bond rate and matures in 5 years can be purchased for $8000. Interest is paid at the end of each year for the next 5 years. Find the annual after-tax rate of return of this investment. Assume a 35% tax rate applies. Contributed by D. P. Loucks, Cornell University.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.