Multiple Choice
An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively.If the investor is in the 20% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.
A) 8%; 10%
B) 8%; 8%
C) 6.4%; 8%
D) 6.4%; 10%
Correct Answer:
Verified
Correct Answer:
Verified
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