AAFM Exam GLO_CWM_LVL_1 Topic 8 Question 27 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 27
Topic #: 8

You are considering investing in a following bond:

Your income tax rate is 34 percent and your capital gains tax is effectively 10 percent. Capital gains taxes are paid at the time of maturity on the difference between the purchase price and par value. What is your post-tax approximate yield to maturity on this bond?

A10.09%

B10.83%

C11.92%

D11.06%

Show Suggested Answer

Suggested Answer: D

by Gary at May 05, 2022, 06:23 PM

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