10. Liz can invest in New York City bonds (ie., municipal bonds) that Pay 8% interest or Kabletown, Inc. 10% interest. Liz's marginal tax rate is 28%. Which of the following statements corporate bonds that pay is/are true?

I. The New York City bonds have a 5.76% after-tax rate of return.

II The Kabletown bonds have an implicit tax of 20%.

III The New York City bonds have an explicit tax of 28%.

IV Liz should invest in the New York City bonds to maximize her after-tax rate of return.

a. I only

b. I and II

c. III and IV

d.IV only

e. All of the above are true.

0. Liz can invest in New York City bonds (1e, municipal bonds) that pay 8% interest or Kabletown, Inc. corporate bonds that pay 10% interest. Liz's marginal tax rate is 28%. Which of the following statements is/are true? a. I only b. I and II c. III and IV d. IV only e. All of the above are true