Curtis Invests $250,000 in a City of Athens Bond That

question 66

Multiple Choice

Curtis invests $250,000 in a city of Athens bond that pays 7% interest. Alternatively, Curtis could have invested the $250,000 in a bond recently issued by Initech, Inc. that pays 9% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24%. If Curtis invested in the Initech, Inc. bonds, what would be his after-tax rate of return from this investment?

• A) 5.32%
• B) 7.00%
• C) 6.84%
• D) 2.52%
• E) None of the choices are correct.

---

Definitions:

Employee Performance

The job-related actions and behaviors of an employee that contribute to the goals of the organization.

Goal-Setting Programs

Structured initiatives within an organization that aim to define and achieve specific objectives through actionable steps and milestones.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the objectives.

Evaluation

The process of systematically examining something to determine its merit, worth, or significance, often using specific criteria.