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Assume an Investor's Tax Rate Is 25 Percent

Question 20

Multiple Choice

Assume an investor's tax rate is 25 percent. The before-tax yield on a security is 12 percent. What is the after-tax yield?

A) 16.00 percent
B) 9.25 percent
C) 9.00 percent
D) 3.00 percent
E) None of these are correct.

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