What would the after-tax yield be on an investment that offers a 6 percent fully taxable yield? Assume a marginal tax rate of 31%.
A) 2.79%
B) 6.48%
C) 4.14%
D) 7.20%
E) 12.50%

Name: What would the after-tax yield be on an investment that offers a 6 percent fully taxable yield? Assume a marginal tax rate of 31%. A) 2.79% B) 6.48% C) 4.14% D) 7.20% E) 12.50%
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Quizplus · Accepted Answer

After-tax yield = Before-tax yield (1 - Tax Rate)= 6%(1 - .31)= 4.14%

What Would the After-Tax Yield Be on an Investment That