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Augustus1 Augustus1
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7 years ago
Chris can invest $4,000 of after-tax dollars (AT$) directly in a taxable bond outside an IRA, or she can contribute the $4,000 to a nondeductible IRA and invest in the same bond through the IRA vehicle. In either case the bond yields an annual 7% before-tax rate of return (BTROR). Charlene's marginal tax rate is 20%, and she expects it to remain so for the entire investment horizon of 25 years. What is her annualized after-tax rate of return (annualized ATROR) for the "bond outside the IRA"?
A) 5.6%
B) 6%
C) 6.5%
D) 7%
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
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We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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MsLippyMsLippy
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Augustus1 Author
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7 years ago
I'm forever indebted to you!

THANKS
We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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