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Jane Smith currently holds tax-exempt bonds of Good Samaritan Health care that pay 7% interest. She is in the 40% tax bracket. Her broker wants
Jane Smith currently holds tax-exempt bonds of Good Samaritan Health care that pay 7% interest. She is in the 40% tax bracket. Her broker wants her to buy some Beverly Enterprise taxable bonds that will be issued next week. With all else the same, what rate must be set on the Beverly bonds to make Jane interested in making a switch?
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