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assume you are in the 38% personal tax bracket. you are considering investing $15,000 in for profit hospital corporation of america bonds that carry an
assume you are in the 38% personal tax bracket.
you are considering investing $15,000 in for profit hospital corporation of america bonds that carry an 11.5% interest rate.
suppose also that twin cities memorial hospital has issued tax exempt bonds that have an interest rate of 8%
a. how much total interest income would you recieve on both investments?
b. which investment would you choose?
c. what is the interest rate where you would be indifferent between both investments?
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