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What is her after-tax yield interest rate on the bonds -

Kim Davis is in the 40 percent tax bracket. She is considering investing in HCA (taxable) bonds that carry a 12 percent interest rate.
a. What is her after-tax yield (interest rate) on the bonds?
b. Suppose Twin Cities Memorial Hospital has issued tax-exempt bonds that have an interest rate of 6 perecent. With all else the same, should Kim buy the HCA bonds (earlier question) or the Twin Cities bonds?

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Financial Accounting: What is her after-tax yield interest rate on the bonds -

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