a. concept of duration is not applicable to a strip bond b. bonds duration is always equal to one c. bonds duration is e
Posted: Tue Jan 18, 2022 1:01 pm
a. concept of duration is not applicable to a strip bond
b. bonds duration is always equal to one
c. bonds duration is equal to 10
d. bond's duration is equal to it's term to maturity
Frank has a marginal tax rate of 36%. He purchased a Canadian corporate bond with a dace value of $1000 for $972. The bond had exactly one year remaining to maturity and a coupon of 1.73%. If frank holds the bond until maturity, what after-tax rate if return will he realize from the bond?
a. 3.47%
b. 3.50%
c. 2.98%
d. 2.90%
b. bonds duration is always equal to one
c. bonds duration is equal to 10
d. bond's duration is equal to it's term to maturity
Frank has a marginal tax rate of 36%. He purchased a Canadian corporate bond with a dace value of $1000 for $972. The bond had exactly one year remaining to maturity and a coupon of 1.73%. If frank holds the bond until maturity, what after-tax rate if return will he realize from the bond?
a. 3.47%
b. 3.50%
c. 2.98%
d. 2.90%