FIN MCQ
FIN 332
An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.6%, respectively. If the investor is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.
An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.6%, respectively. If the investor is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.
An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.6%, respectively. If the investor is in the 20% tax bracket, his after-tax rates of return on the municipal and corporate bonds would be, respectively, _____.
A) 5% and 6.6%
B) 5% and 5.28%
C) 4.00% and 6.6%
D) 6.00% and 5.28%
Answer: B
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