Question
Assume that Bill's marginal tax rate is 22 percent. If corporate bonds pay 9 percent interest, what interest rate would a municipal bond have to
Assume that Bill's marginal tax rate is 22 percent. If corporate bonds pay 9 percent interest, what interest rate would a municipal bond have to offer for Bill to be indifferent between the two bonds? (Do not round your final answer.)
| 10.80 percent | ||
| 22.00 percent | ||
| 8.00 percent | ||
| 7.02 percent | ||
| 9.00 percent |
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
