The state of delaware issued a 875 percent bond with a face, Financial Management

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The state of delaware issued a 875 percent bond with a face

The State of Delaware issued a 8.75 percent bond with a face value of $1,000. The bond sells for $1,000 and provides a 8.75 percent yield to maturity.

What yield on a corporate bond would result in both bonds providing the same after-tax rate of return to an investor in a 30 percent tax bracket?

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Financial Management: The state of delaware issued a 875 percent bond with a face

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Financial Management: The state of delaware issued a 875 percent bond with a face

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