Find what will be the after-tax return rate-atrr

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Reference no: EM13242070

On January 1, 1994 Popoff purchased a bond with a face value of $10,000 for $9,500. The bond was to pay 8 percent per year payable on December 31 of each year and be purchased back at the end of the 5th year for face value.
The before-tax rate for Popoff is 9.30%.
If he is a 25% combined tax rate what will be the after-tax return rate (ATRR) on this bond?

Reference no: EM13242070

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