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Business, 25.09.2020 01:01 jace9926

Taxpayer Y, who has a 15 percent marginal tax rate, invested $50,000 in a bond that pays 9 percent interest on a yearly basis. Compute Y’s annual net after-tax cash flow from this investment assuming that: a) The interest on the bond is tax-exempt.
b) The interest on the bond is taxable.

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Taxpayer Y, who has a 15 percent marginal tax rate, invested $50,000 in a bond that pays 9 percent i...

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