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    Exam 3: Structure of Interest Rates
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    An Investor's Tax Rate Is 30 Percent
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An Investor's Tax Rate Is 30 Percent

Question 31

Question 31

Multiple Choice

An investor's tax rate is 30 percent. What must the before-tax yield on a security be to have an after-tax yield of 11 percent?


A) 7.7 percent
B) 15.71 percent
C) 130 percent
D) 11.00 percent
E) none of the above

Correct Answer:

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