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1 pts Question 42 Suppose a foreign investor who holds tax-exempt Eurobonds paying 7.00% is considering investing in an equivalent-risk domestic bond in a country

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1 pts Question 42 Suppose a foreign investor who holds tax-exempt Eurobonds paying 7.00% is considering investing in an equivalent-risk domestic bond in a country with a 28.00% withholding tax on interest paid to foreigners. If 7.00% after-tax is the investor's required return, what before-tax rate would the domestic bond need to pay to provide the required after-tax return? 11.96% 13.11% 10.40% 9.72%

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