A corporate bond is yielding 9%. You are in the 35% tax bracket. What is the after tax yield on the bond?

A) 5.85%
B) 8.10%
C) 3.90%
D) 12.15%

After Tax Yield

The income return on an investment after taxes have been deducted, revealing the net gain to the investor.

Corporate Bond

A debt security issued by a corporation and sold to investors, with the promise of interest payments and the return of principal at maturity.

Tax Bracket

Ranges of income taxed at particular rates, which typically progress from low to high depending on the taxable income level.