Problem $3-58($LO $3-5)($Algo$)$

Hui is currently considering investing in municipal bonds that earn $7\mathrm{.}80$ percent interest, or in taxable bonds issued by the Coca$-$Cola Company that pay $10\mathrm{.}40$ percent.

Required:

a$.$ If Hui's tax rate is $22$ percent, which bond should he choose?

b$.$ Which bond should he choose if his tax rate is $32$ percent?

c$.$ At what tax rate would he be indifferent between the bonds?

d$.$ What strategy is this decision based upon?

Complete this question by entering your answers in the tabs below.

Required A

Required B

Required C

Required D

If Hui's tax rate is $22$ percent, which bond should he choose?

Required B