3 years ago

There are

Law

1 answer:

yaroslaw [1]3 years ago

8 0

Answer:a 7

Explanation:

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If Tom invests $125,000 in a taxable corporate bond that provides a 8 percent before-tax return, how much will Tom's investment

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This question is missing the Tom's marginal tax rate.

So, I assume it will be 35%

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ATRR = (.08 x (1 - 0.35) = 0.052 ;

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20yrs = $125,000 x (1.052)^20 = 344,528

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