Yield on a synthetic chemical company bond


A 9 percent coupon bond issued by the State of Pennsylvania sells for $1,000 and thus provides a 9 percent yield to maturity. What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax rate of return to an investor in the 28 percent tax bracket?

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Finance Basics: Yield on a synthetic chemical company bond
Reference No:- TGS051891

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