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Assume that Bill's marginal tax rate is 22 percent. If corporate bonds pay 11 percent interest, what interest rate would a municipal bond have
Assume that Bill's marginal tax rate is 22 percent. If corporate bonds pay 11 percent interest, what interest rate would a municipal bond have to offer for Bill to be indifferent between the two bonds? Note: Do not round your final answer. Multiple Choice 22.00 percent 13.20 percent 1.00 percent 10.00 percent None of the choices are correct.
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