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Assume that Marcus Cooper pays income taxes at a 28 percent rate. He currently owns a not-for-profit (municipal) bond that pays 6.2 percent interest. What
Assume that Marcus Cooper pays income taxes at a 28 percent rate. He currently owns a not-for-profit (municipal) bond that pays 6.2 percent interest. What interest rate would have to be set on a for-profit (corporate) bond to produce the same amount of usable (after-tax) income? 8.61 percent O 8.86% 9.12% O 8.16%
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