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Which of the following statement is FALSE? A. The highest interest rate, for a given horizon, is the rate paid on U.S. Treasury securities. B.

Which of the following statement is FALSE?

A. The highest interest rate, for a given horizon, is the rate paid on U.S. Treasury securities. B. The equivalent after-tax interest rate is r(1-T). C. The actual return kept by an investor will depend on how the interest is taxed. D. It is important to use a discount rate that matches both the horizon and the risk of the cash flows.

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