Question
29. Assume that John's marginal tax rate is 37 percent. If a city of Austin bond pays 3.9 percent interest, what interest rate would a
29. Assume that John's marginal tax rate is 37 percent. If a city of Austin bond pays 3.9 percent interest, what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds?
A) 24.05%
B) 6.19%
C) 3.90 %
D) 2.46%
E) None of hte choices are correct
24.Assume that Javier is indifferent between investing in a city of El Paso bond that pays 3.55 percent interest and a corporate bond that pays 5.4 percent interest. What is Javier's marginal tax rate?
A) 104.22 %
B)54.26 %
C)44.26%
D)34.26%
D) Nonce of the choices are correct
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