# How to calculate the after-tax return

Sigchi4life
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Question description

Calculate the after-tax return of 6.89 percent, 20 year, A- rated corporate bond for an investor in the 10% marginal tax bracket. Compare this yield to a 4.87 percent, 20 year, A-rated tax- exempt municipal bond and explain which alternative is better .Repeat the calculations and comparison for investor in the 33 percent marginal tax bracket.

He after-tax return of a 6.89 percent, 20 year, A-rated corporate bond for an investor in the 10% marginal tax bracket is _____ ( round to the two decimal places)

Assuming a 1 year money market at 1.91 percent(APY), a 0.57 % inflation rate, a 35 percent marginal tax bracket, and a constant 60,000 balance, calculate he after-tax rate of return, the after-tax return and the monetary return. What are implication of this result for cash management decision?

Assuming a 1 year money market account investment at 1.91 percent (APY), a 35 percent marginal tax bracket, and a constant 60,000 balance the after-tax rate of return is____%.( round to the two decimal places)

Base on the after-tax returns, what federal rate is investors better off choosing a tax exempt 4.68 percent municipal bond over a taxable 6.68percent corporate bond?

The after-tax return on the corporate bond when the tax rate is 10% is _____%( round to the two decimal places)

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