What is aftertax yield on a corporate bond

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Question 1: Laura has an average tax rate of 15% and a marginal tax rate of 24%. What is her aftertax yield on a corporate bond which has a 4.5% yield?

Multiple Choice

Option 1: 3.42%

Option 2: 2.34%

Option 3: 4.23%

Option 4: 4.32%

Option 5: 3.24%

Reference no: EM132724981

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