Question
Which of the following statements is FALSE? (more then 1 may be correct) When interest on a loan is tax deductible, the effective after-tax interest
Which of the following statements is FALSE? (more then 1 may be correct)
When interest on a loan is tax deductible, the effective after-tax interest rate is t*(1 - r).
Interest rates vary with the investment horizon
When we refer to the "risk-free interest rate," we mean the rate on U.S. Treasuries
All borrowers have some risk of default
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Public Finance
Authors: Harvey S Rosen
6th Edition
0072374055, 978-0072374056
