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Suppose a foreign investor who holds tax exempt Eurobonds paying 10 50% s considering investing in an equ alent risk domestic bond in a country
Suppose a foreign investor who holds tax exempt Eurobonds paying 10 50% s considering investing in an equ alent risk domestic bond in a country with a 28% withholding tatoa interest paid to foreigners. If io 0% after-tax s the investor's required return, what before tax rate would the domestic bond need to pay to pro ide the ropar d after-tax return? O a. 12.83% b. 16.33% O c. 14.58% 0 d. 15.46% O e. 16.92%
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