Question
An investor can invest in either a tax exempt security that pays 5% or a taxable corporate security of comparable risk and maturity that pays
An investor can invest in either a tax exempt security that pays 5% or a taxable corporate security of comparable risk and maturity that pays 8%. At what marginal tax rate will the investor be indifferent between those two securities?
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
