Question
Assume Vandell, a individual taxpayer, is in a 25 percent tax bracket. He invests in Otay Mesa Water District Bonds that pay 4.5 percent interest.
Assume Vandell, a individual taxpayer, is in a 25 percent tax bracket. He invests in Otay Mesa Water District Bonds that pay 4.5 percent interest. What interest on a taxable bond would provide the same after-tax return to Vandell? Enter your answer as a percentage, rounded to two decimal places. __________%
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Principles Of Financial Accounting
Authors: Jerry J. Weygandt, Lorena Mitrione, Michaela Rankin, Keryn Chalmers, Paul D. Kimmel
3rd Edition
0730302296, 978-0730302292
