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Assume that Bill's marginal tax rate is 32 percent. If corporate bonds pay 11 percent interest, what interest rate would a municipal bond have to

Assume that Bill's marginal tax rate is 32 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?

Multiple Choice

32.00 percent

14.30 percent

11.00 percent

10.00 percent

None of the choices are correct

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