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    A bond issued by the State of Pennsylvania provides a 9 percent yield.

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    A bond issued by the State of Pennsylvania provides a 9 percent 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 36 percent tax bracket?

    14.06%
    17.50%
    7.00%
    12.50%
    9.00%.

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    https://brainmass.com/business/bond-valuation/bond-issued-state-pennsylvania-28860

    Solution Summary

    This solution provides simple calculations for determining the bond yield.

    $2.19

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