Question
The general obligation municipal bonds of the state of Maryland currently yield 4.60%. AT&Ts corporate bonds yield 7.16%. Your marginal state tax rate is 10%,
The general obligation municipal bonds of the state of Maryland currently yield 4.60%. AT&Ts corporate bonds yield 7.16%. Your marginal state tax rate is 10%, and you are a Kansas resident. What would your federal tax rate need to be for you to be indifferent between these two bond investments?
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
