Adequate information: Corporate bond yield is 7.68 % . The federal-plus-state-tax bracket of the investor is 25 % . To compute: The bond’s after-tax yield to the investor Introduction: One of the ways that businesses raise money is through the issuance of bonds. The yield on bonds refers to the amount of return that a bond's investor receives. There are many different forms of bond yields and the yield fluctuates along with the price.

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Chapter 6, Problem 1P

Summary Introduction

Adequate information:

Corporate bond yield is 7.68% .

The federal-plus-state-tax bracket of the investor is 25% .

To compute: The bond’s after-tax yield to the investor

Introduction: One of the ways that businesses raise money is through the issuance of bonds. The yield on bonds refers to the amount of return that a bond's investor receives. There are many different forms of bond yields and the yield fluctuates along with the price.

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