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Curtis invests $350,000 in a city of Athens bond that pays 5.5% interest. Alternatively, Curtis could have invested the S350.000 in a bond recently issued
Curtis invests $350,000 in a city of Athens bond that pays 5.5% interest. Alternatively, Curtis could have invested the S350.000 in a bond recently issued by Intech, Inc. that pays 8% interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 28% What is Curtis's after-tax rate of return on the city of Athens bond? Multiple Choice 5.50% 8.00% None of the choices are correct 154%
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