Find what is annes annual after-tax rate of return

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Reference no: EM13334157

Anne's marginal income tax rate is 20 percent. She purchases a corporate bond for $20,000 and the maturity, or face value, of the bond is $20,000.

If the bond pays 8 percent per year before taxes, what is Anne's annual after-tax rate of return from the bond if the bond matures in one year?

What is her annual after-tax rate of return if the bond matures in 10 years?

Reference no: EM13334157

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