The​ after-tax return of the 10.54​%, ​20-year, A-rated corporate bond for an investor in the 10​% marginal tax bracket is

enter your response here​%.

To calculate the after-tax return of the bond, we can use the following formula:

\[
\text{After-tax return} = \text{Pre-tax return} \times (1 - \text{Tax rate})
\]

Given:
- Pre-tax return = 10.54%
- Tax rate = 10% (0.10)

Now, we plug these values into the formula:

\[
\text{After-tax return} = 10.54\% \times (1 - 0.10)
\]
\[
\text{After-tax return} = 10.54\% \times 0.90
\]
\[
\text{After-tax return} = 9.486\%
\]

So, the after-tax return is **9.49%**.

Would you like further clarification or details?

Here are 5 related questions you might find interesting:
1. How does the marginal tax rate affect bond returns?
2. What is the difference between corporate bonds and government bonds in terms of tax?
3. How would a higher tax bracket impact after-tax returns?
4. What are A-rated bonds, and why are they considered safer?
5. How does bond maturity affect its return?

**Tip:** When comparing investment options, always consider the after-tax return to get a more accurate

The after-tax return of the 10.54​%, ​20-year, A-rated corporate bond for an investor in the 10​% marginal tax bracket is enter your response here​%.

Learn how to calculate the after-tax return of a 10.54% A-rated corporate bond for an investor in a 10% marginal tax bracket. This step-by-step solution breaks down the formula and shows how the bond's return is affected by taxes. Suitable for high school students studying finance or economics.

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