Question
2.3 Kim Davis is in the 40 percent personal tax bracket. She is considering investing in HCA (taxable) bond that carry a 12 percent interest
2.3 Kim Davis is in the 40 percent personal tax bracket. She is considering investing in HCA (taxable) bond that carry a 12 percent interest rate. a. What is her after-tax yield interest rate on the bonds? | ||
Insert your response here.
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b. Suppose twin cities memorial hospital has issued tax-exempt bonds that have an interest rate of 6 percent. With all else the same, should Kim buy the HCA or the Twin Cities bonds? | ||
Insert your response here.
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
