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An investment is available that pays a tax-free 5%. Ignoring risk, what is the pre-tax return on taxable bonds? The corporate tax rate is 30%.

An investment is available that pays a tax-free 5%. Ignoring risk, what is the pre-tax return on taxable bonds? The corporate tax rate is 30%. a. 6.00% b. 8.57% c. 4.20% d. 7.14%

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