After-tax rate of return to an investor

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A bond issued by the State of Pennsylvania provides a 7% yield. What yield on a Synthetic Chemical Company bond would cause the two bonds to provide the same after-tax rate of return to an investor in the 35% tax bracket?

a) 11.42%

b) 8.29%

c) 10.77%

d) 11.09%

e) 8.18%

Reference no: EM13155336

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