Suppose a bank has found bank qualified municipal bonds


Suppose a bank has found bank qualified municipal bonds which have a nominal grossrate of return of 8 percent and that it can borrow funds needed for this purchase at a rate of 6.25percent. This bond is in the 35 percent tax bracket. What is the net after-tax return on this bond?

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Finance Basics: Suppose a bank has found bank qualified municipal bonds
Reference No:- TGS01549438

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