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Question 10 (4 points) West Lafayette issued a bond that has a coupon rate of 8.5% and YTM of 4.86%, while Wabash Company's bond has
Question 10 (4 points) West Lafayette issued a bond that has a coupon rate of 8.5% and YTM of 4.86%, while Wabash Company's bond has a 9.0% coupon rate and its YTM is 6.70%. What is the tax rate that will make an investor indifferent between the two bonds? Answer the question according to the following format. Example, if the tax rate is 38.9013% round it to two decimals without typing the percentage sign: 38.90
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