Question
In 2006, agency bonds sold at a yield of 5.38%, while high-grade tax-exempts of comparable maturity offered 3.6% annually. If an investor receives the same
In 2006, agency bonds sold at a yield of 5.38%, while high-grade tax-exempts of comparable maturity offered 3.6% annually. If an investor receives the same after-tax return from corporates and tax-exempts, what is that investors marginal rate of tax?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
