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An investment is available that pays a tax-free 5%. The corporate tax rate is 25%. Ignoring risk, what is the pre-tax return on taxable bonds?
An investment is available that pays a tax-free 5%. The corporate tax rate is 25%. Ignoring risk, what is the pre-tax return on taxable bonds?
| 7.69%. | |
| 5% | |
| 6.25% | |
| 7.14% | |
| 6.67% |
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Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
